Page 14 - Risk Management Bulletin April -June 2021

RMAI BULLETIN APRIL TO JUNE 2021

history, length of account, types of credit facilities and of AI are being introduced to catch fraudsters with
inquiries made by the applicants. It helps immensely exceptional speed and efficiency. Other potential future
in effective deployment of credit through a robust applications of AI in banking and finance lie in the area
appraisal system and thus ensures the minimum of customer service and sales of financial products.
deterioration in quality of assets. Also credit
monitoring is very essential for the Banks to keep EASE 3.0 (Enhanced Access & Service Excellence),
borrower's account safe from fraud and unwanted which is PSBs reforms agenda for FY 2020 - 2021. It
slippages. AI plays a vital role to receive early warning sets the implementation roadmap for this financial
signals for the accounts with potential stressed. It may year. EASE 3.0 aims to drive transformation in mass
help the banks identify and detect fraud cases with banking landscape by way of adopting digital driven
higher accuracy and at large scale. services offering backed by robust IT support system
in marketing, loan underwriting, monitoring, dynamic
Application of AI in HR: rating and best customer services. It is fully focused on
AI as it emphasizes highly on Digitization, Data
Artificial Intelligence plays a significant role in Analytics, and Governance etc. through all its 5
transforming HR and workforce. Some of the themes, 27 Action Points and 38 Evaluation Metrics.
applications are illustrated below-
Y It improves relationship between the employees In brief EASE 3.0 seeks to enhance ease of banking in
and the organization. all customer experiences using technology, alternate
Y It reduces the human bias. data analytics, Dial-a-Loan for doorstep loan
facilitation. Credit@click for end to end digitized
Y It rationalizes the training need analysis.
lending, analytics based and Technology-enabled Retail
Y It develops conducive workplace learning and MSME credit outreach and Due diligence through
environment. digitally populated data. Prudent lending through IT-
Y Scientific distribution of work amongst employees. based system for scoring, rating and pricing of risk. On
the spot EASE banking outlets at frequently visited
Y Business outcome focused performance appraisal places like Malls, stations, office complexes etc. Palm
system.
banking, digitalized branch experience and tech
Y Operational requirement based staff deployment. enabled agriculture lending are the key highlights of
EASE 3.0 action points.
The Future of AI in Banking Sector:
Now we have understood the benefits and importance Covid-19 pandemic has accelerated digital
of AI in banking industry. AI has reached the stage transformation at banks. Pete Swabey, Editorial
where it is sufficiently advanced and affordable to director of Europe, the Middle East and Africa (EMEA)
warrant practical implementation in financial services. at the Economist Intelligence Unit (EIU) said, "Retail,
Banks are busy exploring ways in which they can corporate and banks were already under pressure to
harness the power of AI to streamline internal process deploy new technologies quickly and charge their
and improve the customer experience. If we look the cultures to compete with big tech firms and payment
development in the field of technology, we see that it players to deliver an engaging digital experience. Now
is getting smarter day by day, this gives us assurance as digital banking surges as a result of COVID-19 crisis,
that in the future we can only see that technology of this task is more pressing than ever".
AI going stronger and stronger, which will help the
customer to have a secure banking experience. As per the various reports and survey artificial
intelligence will become the primary channel through
In today's low-trust environment, artificial intelligence which financial institutions and their clients will interact
offers a new way to tackle financial fraud, build trust, in coming days. Let us look at some of the areas in which
and create a secure financial atmosphere. New forms AI will rule in future. T

"Never download any transaction application recommended or requested by any
unknown person or of which you have never heard about."

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