Artificial Intelligence in Retail Banking
Artificial Intelligence (AI) is the unavoidable factor in Retail Banking in the current scenario. It will change the whole trend in Retail Banking. Even some Small Private Sector Banks, Old Private Sector Banks, and all New Generation Private Banks are launched their Robots to assist their customers in Branches in substitute to Customer Service Executives. All Banks are switch over their Retail Banking vertical with Artificial Intelligence to survive longer in Banking Industry.
Front Office and Customer Service:
Banks are launched their Robots to assist their customers in Branches in substitute to Customer Service Executives. Self Service Kiosks in the Lobbies of the Bank branches are helping their customers in Fund Transfers, Generating Account Statements, Loan Applications, and other Banking services. It will help Banks to improve their Customer Experience, increase customer satisfaction, fulfill customer needs, and save valuable time for customers. It will help the Banks to reduce their expenditure on appointing separate staff to assist their customers.
Customer Experience is the most important and challenging factor for Banks nowadays. Lack of customer service will affect the Reputation of the entire Bank. So, Banks are concentrating on customer service and to improve customer experience. In order to improve the customer experience as better now, they have taken the weapon called ” Implement of AI in Retail Banking”. It will help the Banks to retain their valuable Retail, HNI, and UHNI Customers.
Lending and Risk Management:
Core Business of Banks comes from Lending. From Loan Products such as Personal Loans, Home Loans, Mortgage Loans, Vehicle Loans, Gold Loans, SME Loans, Business Loans, Overdrafts, Creditcards and Consumer Durable Loans, the Banks getting their income in the term of Interest. Due to poor Risk Management factors, the percentage of Non-performing assets is a big headache for Banks. Most of our Indian Nationalised Banks are at loss due to this Poor and existing Risk Management model.
- The existing Risk Management model is 50% only. But, the Machine Learning Model is 86%.
- The machine learning model reduces the lending risk and safeguards the Banks from Non-performing Assets.
- Comparing to the Existing methodology in lending, the Machine learning model will reduce the processing time and makes customer experience much easier.
- For example; the Normally Existing model of loan processing for Personal Loan is taking a min 2 to 5 working days. But, In AI will easier this process within the minutes by analyzing the overall transaction history and credit history of the customer.
- No need for the separate Loan officer and Executive to process the Loan Application of the customer.
- It will safeguard the Banks from providing loans to Defaulters.
Banks are struggling to enable the Safe and Security Features to avoid ATM Scams. By using Skimmer Devices some ATM Scammers stealing customer’s money every day in India and all over the World. In order to safeguard the ATMs from Scammers, some of the Banks already installed Face Recognition in ATMs.
- It prevents the customer’s money from Scammers who using Skimmer Devices in ATMs.
- It will recognize the customer’s face and identify his whole data and help him to complete the process.
- Other than cash withdrawal AI-Enabled ATMs will easier the Fund Transfer, Service Requests, and Instant Loan Application and Market the Bank Products to customer.
- Some of our Indian Private Banks are already enabled this AI in their ATMs to generate the Leads of other Bank clients who using those ATMs for cash withdrawal
Internet Banking/ Mobile Banking:
With this facility, the Banks are reducing their crowd in Branches. One more step as advanced they are now enabling Artificial Intelligence in Interner Banking and Mobile Banking. According to the transaction history of the client, there are a lot of recommendations for Loans, Creditcards, Wealth Products, Insurance Products, Investments, and other products. It will do the role of Marketing Executive who sell the Bank Products. It automatically sends Loan Due date Notifications, Fixed Deposit Maturity Notifications, Birthday Wishes, and Anniversary Wishes to improve and easier the customer experience.