Page 27 - Banking Finance August 2024

ARTICLE

HOW ROBOTICS IS

CHANGING THE FACE

OF INDIAN BANKING:

AN IN-DEPTH

ANALYSIS

Introduction simple process automation to handle repetitive tasks. Over
time, the scope of robotics expanded, incorporating
The banking sector is the backbone of any economy, and in
India, it has been witnessing significant transformations advanced AI and machine learning algorithms to perform
driven by technological advancements. Among these more complex functions. Banks began using RPA for
advancements, robotics stands out as a revolutionary force automating mundane tasks such as data entry, account
reconciliation, and compliance reporting. This early adoption
reshaping the landscape of Indian banking. Robotics,
including Robotic Process Automation (RPA) and AI-powered laid the groundwork for more sophisticated robotic
bots, is not only enhancing operational efficiency but also applications.
improving customer experiences. However, this
transformation comes with its own set of challenges and Current State and Innovations
risks. This article delves into how robotics is changing the Today, robotics in Indian banking has evolved to include
face of Indian banking, the benefits it brings, and the various chatbots, AI-driven customer service agents, and even
risks associated with it. robotic advisors. These innovations are transforming various
aspects of banking operations, from front-end customer
The Evolution of Robotics in Indian interactions to back-end processing.
1. Chatbots and Virtual Assistants: Many Indian banks
Banking have deployed chatbots and virtual assistants to handle
Early Adoption and Progress customer inquiries, provide account information, and
The adoption of robotics in Indian banking started with assist with transactions. Examples include ICICI Bank's
iPal and HDFC Bank's EVA, which offer 24/7 customer
support, significantly reducing wait times and improving
customer satisfaction.
2. Robotic Process Automation (RPA): RPA is extensively
used for automating backoffice operations such as loan
processing, fraud detection, and KYC (Know Your
Customer) compliance. This not only speeds up these
processes but also minimizes human errors.

24 | 2024 | AUGUST | BANKING FINANCE