Page 13 - Risk Management Bulletin April -June 2021

RMAI BULLETIN APRIL TO JUNE 2021

and financial crimes by monitoring behavioral patterns Role in Marketing:
of users for any kind of abnormal changes or Artificial intelligence (AI) in marketing is a very
anomalies. The tool that is used for AI gets smarter and powerful tool, it allows marketers to crunch huge
smarter day by day. In other words AI has developed amounts of marketing data analytics from social
a better immune system in banking sector to resist and media, emails and the web in a relatively faster time.
fight with the fraudulent and suspicious activities.
Moreover the insights they get in a shorter time frame
will help marketers boost campaign performance and
Vaticination of Future Outcomes and return on investment faster. This gives marketers and
Trends: businesses more time to focus on other quality
AI has the power to predict future scenarios by important tasks. Some of the major contributions of
analyzing past behaviors, it helps banks predict future AI in respect of marketing are enumerated here under-
outcomes and trends. AI is able to detect suspicious Y Gain a deeper understating of customers.
data patterns easily among humungous volumes of Y Optimize digital advertising campaign.
data to carry out fraud management. Further, with its
Y It boosts cross-selling rate by using customer
key recommendation engines, AI studies past to journey analytics.
predict future behavior of data points, which helps
Y It facilitates identification of future outcomes.
banks to successfully up-sell, cross-sell and also for
other financial activities. Y It cushions marketers to track the performance of
their content on a real-time basis.
Digitalization: Y It helps in deciding what content to fashion and

While it is understood, the growing customer's demands when to distribute it.
have forced banks to embrace digitization, build easy to Y It predicts customer behavior and identifies and
use simple user interfaces, and offer better customer nurtures the needs of the customers.
support integrating bots & human interactions; a lot
more can be done to further enrich a customer's Y It guides in developing customized products and
relationship with a bank. Artificial Intelligence is widely services.
perceived as a catalyst that could help the banks
strengthen relationships with their customers. Enhanced Digital Advertising:
In the present era of banking, it is one of the biggest
AI provides numerous benefits in the form of reduced
operational costs & improved customer relationship by challenges in our banking industry to deliver effectual
using digitalization in banking industry like- advertising for their strong appearance in the market.
Digital advertising is routed through various online and
Y It helps in enhancing customer experience.
digital channels. It leverages mediums such as emails,
Y It is time saving for both the customers as well as social Media, mobile applications, search engines and
the bank. websites to display advertisements and messages to the

Y It helps to improve accessibility to information. suitable market by using AI as a catalyst. It will act as a
powerful mechanism to bring about a drastic change in
Y It helps to reduce the human error or as risk
the way business advertise their products and services.
mitigator.
Today digital advertising strategies would be impossible
Y It helps in the movement of large cash inflow and without a rudimentary form of AI.
out flow.
Y It helps in dealing with cashless transactions from Utility in Credit and Monitoring:
any place and at any time.
In the past, banks were not able to assess the previous
Y It reduces the cost of transaction for the banks. credit history of an applicant during their lending
Y It strengthens monitoring of financial transactions process. Transunion CIBIL Limited, India's first credit
and other banking activities. information company, referred as credit bureau. It
collects and maintains the records pertaining to loans
Y It helps in implementation of Government's and credit cards of individuals and commercial entities.
schemes and policies. In the form of score CIBIL implies the past repayment

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