Indian Banking System is Getting Smarter- Thanks to AI
Elon musk went to buy State Bank of India (SBI), and they told him, ” Lunch ke baad aana!” (Come after the lunch break).
It may sound like a joke, but it says a lot about the financial services situation in India.
You may want to blame SBI for being delayed in its services, but they are serving 450 million customers from its 22,000 branches, with more than twenty thousand customers per branch! Whooping numbers. Considering the population of India, no number of employees is not sufficient to serve these many people manually. The situation is not better with other bigger banks like HDFC, Axis, etc.
Although, increased penetration of the internet and smartphones have enabled these financial services to serve more efficiently. And here comes the scope for automation of standard tasks, resolving trivial queries, security enhancement, and 24×7 customer support. AI for banking is a new avenue that has just opened up.
Banking performance using AI – SIA Example
Recently SBI, the largest bank in the country, launched “SBI Intelligent Assistant,” in short “SIA.”
SIA saved 52% support cost over 6 months which is more than 850 Crores ( 11 Million USD )!
What is more interesting is that over 29% of queries answered by SIA are related to product inquiries. This adoption has helped SBI to acquire new customers without an additional cost. Not just that, but it served 1.9 crore queries at 10,000 queries per second rate. And all this impact can be seen in just 6 months.
Considering it is an AI-based Assistant, SIA will improve with time and achieve even higher business solutions.
Other major banks also did not hold back and had already launched their own AI assistants.
What does the near future look like?
Using AI in banking, the financial institutes are planning to implement the following features in the near future:
- Support all browsers and devices
- Omni-channel capabilities – Website, Mobile App, SMS, IVR
- Assist members with information, transactions, and proactive experiences
- Successfully support the differently-abled according to ADA guidelines
- Integrate with CBS/CRM applications.
Not only this. By using data from customer interactions, their mediums of interaction, timings, location, and much such information, these companies will further optimize their resources, resulting in a better customer experience.
India needed automation in banking more than any other country in the world. The results are already visible. We should not be surprised to see entire bank departments optimized and run by AI assistants in 6-8 years.
In the next 5 years, the automation companies will have enough data from users’ interactions to build such systems accurately. Maybe Elon can buy it then; until then, Lunch chal raha hai! (Lunch is still on!)
March 30, 2022
January 7, 2021