We all know that the Indian Banking sector is riddled with non-performing assets and frauds. Some notable names, Vijay Mallya, Nirav Modi, etc. Now can this be prevented maybe? Frauds are something that will take time to find out but 22 months! Yes, it takes about 22 months to find fraud in India on average.
The Indian banking sector is being opened up for foreign direct investment and foreign competition. To give the Indian banking sector a fighting chance, they are all amalgamated into 5 major banks. But even this will not be enough as the Indian banking sector is ages behind digitalizing with regards to their foreign counterparts.
AI in Banking Sector
The use of Artificial Intelligence is increasing at a tremendous pace. From Gaming to Simple shopping suggestions AI has been used to increase the chances of sales and also streamline customer interaction. The use of AI in the banking sector will help simplify the banking sector exponentially. The application is endless and ranges from early fraud detection, smooth processing of documents, and also customized messages and schemes to their customers. The use of AI can decrease fraud from the existing 22 months in the Indian banking sector. This is done by carefully analyzing the customers’ previous banking interactions, loan payments, jobs, assets, etc, and then determining the probability that fraud or default in the loan payment.
Making Customer Interactions Smooth
The maximum digitalization that Indian banks have reached is online payment using applications and also “Know Your Customer” (KYC) done to link one aadhar Id with their bank account. In terms of processing bank documents, it is still done manually. This can be made more efficient by introducing Optical Character Recognition or Intelligent Character Recognition. This can then be fed into OCR/ICR readers which with the help of AI technology can populate the necessary areas required for opening an account, processing demand draft, processing checks, etc. By using the AI technology banking process can be made faster. AI technology can also be used to give offers to customers based on their shopping patterns. They can be given the choice of receiving a credit card with reduced interest rates and also offers which will give them discounts on specific transactions from particular banks. The opportunities for the Indian Banking Sector by the use of AI will only increase and the job opportunities created by this will be high and will give IT graduates suitable employment opportunities.