Page 14 - Risk Management Bulletin April -June 2021
P. 14

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


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