Page 30 - Banking Finance October 2020

ARTICLE

LEVERAGING DIGITAL

BANKING THROUGH AI –

INDUSTRY IMPERATIVE

FOR COMPETITIVE

ADVANTAGE &

SUSTAINABILITY

Introduction management. Basis these advantages banks and financial
institutions are relying on machine learning to devise new
Since the last decade, the banking and finance industry has
been actively pursuing the research and use of AI business opportunities and deliver on-demand customer
services.
technologies to gain a competitive advantage in terms of
customer data management for effective decision making.
Across several industry domains, Artificial Intelligence is the
Now banks are increasingly deploying, implementing and
fast-developing technology and the banking and financial
leveraging AI and ML technologies to carve value-based
competitive advantage. Currently, the landscape of Artificial sector is becoming one of the first adopters of Artificial
Intelligence. To achieve a competitive advantage, banks and
Intelligence includes technologies related to natural
language processing and natural language generation financial institutions are increasingly integrating artificial
intelligence to the business model to analyse data for
resulting in several Chatbot initiatives by various banking
effective decision making. The article primarily discusses the
and financial actors. What is essential is to comprehend that
these technologies automate raise the efficiency of financial usage, opportunities and the road ahead for AI and ML
integration in the Indian banking industry.
decision making for a variety of issues including, transactions,
credit-scoring, fraud detection and wealth and risk
The Rise of AI and ML in Banking
About the author With customers becoming tech-savvy, they expect the banks
to use advanced technologies and enable a seamless banking
Mukti Prakash Behera experience. To meet this burgeoning expectation, banks
Faculty (Marketing) have enabled critical services of online and mobile banking
State Bank Institute of Consumer by integrating industry domains of Retail, IT and Telecom.
Banking – Hyderabad But this integration has augmented the transfer of

30 | 2020 | OCTOBER | BANKING FINANCE