Page 29 - Banking Finance August 2024

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develop guidelines that ensure the ethical and responsible transactions. The integration of these technologies will
use of robotics. further enhance the capabilities of robotic systems.

Dependence on Technology Focus on Customer-Centric Solutions
As banks become more dependent on robotic systems, any As competition in the banking sector intensifies, customer-
technical glitches or system failures can have severe centric solutions will become a key focus area. Banks will
consequences. A malfunction in a robotic process can disrupt leverage robotics to offer highly personalized services,
banking operations and impact customer service. Banks improving customer satisfaction and loyalty. AI-driven
need to have robust contingency plans and disaster recovery chatbots and virtual assistants will become more
mechanisms in place to mitigate the risks associated with sophisticated, providing proactive support and tailored
technology dependence. financial advice.

Case Studies: Robotics in Indian Banks Collaboration with Fintech Firms

ICICI Bank Collaboration between traditional banks and fintech firms
will drive the next wave of innovation in robotics. Fintech
ICICI Bank has been a pioneer in adopting robotics and AI.
The bank has implemented over 750 software robots across firms bring agility and specialized expertise in developing
various functions, including retail banking, agri-business, and cutting-edge technologies. By partnering with fintech
companies, banks can accelerate their digital transformation
trade and forex. These robots handle over 2 million
and stay ahead of the competition.
transactions daily, significantly improving efficiency and
accuracy. ICICI's chatbot, iPal, handles customer inquiries
and transactions, offering a seamless banking experience. Regulatory Evolution
Regulatory frameworks will continue to evolve to keep pace
HDFC Bank with technological advancements. Regulators will focus on
ensuring the ethical and responsible use of robotics in
HDFC Bank has integrated RPA and AI in several of its
processes. The bank's AI-based chatbot, EVA (Electronic banking. Guidelines on AI transparency, data privacy, and
cybersecurity will become more stringent, promoting trust
Virtual Assistant), addresses millions of customer queries
and confidence in robotic systems.
with high accuracy. HDFC Bank also uses robotic systems for
KYC compliance and loan processing, reducing turnaround
times and enhancing compliance. Conclusion
Robotics is undeniably transforming the face of Indian
State Bank of India (SBI) banking, offering numerous benefits such as enhanced
State Bank of India, the largest public sector bank in India, operational efficiency, cost savings, improved accuracy, and
has also embraced robotics. The bank has deployed YONO superior customer experiences. However, this transformation
(You Only Need One), an integrated digital banking platform is accompanied by significant risks, including cybersecurity
that uses AI and machine learning to offer personalized threats, implementation challenges, workforce
services. SBI's RPA initiatives have automated various back- displacement, regulatory concerns, and technology
office functions, resulting in significant cost savings and dependence.
improved operational efficiency.
Indian banks must navigate these challenges carefully to
harness the full potential of robotics. By investing in robust
The Future of Robotics in Indian Banking
cybersecurity measures, addressing workforce concerns, and
Increased Adoption and Innovation collaborating with regulators and fintech firms, banks can
The future of robotics in Indian banking looks promising, with ensure a smooth and successful transition to a more
increased adoption and continuous innovation on the automated and efficient future. The continued evolution of
horizon. Banks are likely to explore more advanced robotics in banking promises a landscape where technology
applications of AI and robotics, such as predictive analytics and human expertise work together to deliver unparalleled
for credit risk assessment and blockchain for secure value to customers and stakeholders.

26 | 2024 | AUGUST | BANKING FINANCE