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ARTICLE

forth challenges related to data privacy, customer consent, pain points. This real-time feedback allows banks to identify
and data governance. Banks must navigate these areas for improvement and tailor their services accordingly.
complexities while reaping the benefits of open banking to
offer a broader array of services and maintain a competitive Role of Artificial Intelligence and Chatbots
edge.
Artificial Intelligence (AI) is revolutionizing the banking
sector, offering a wide range of applications to enhance
E-commerce and Payment Innovations: operational efficiency and customer experience. Chatbots,
The rise of e-commerce has reshaped consumer behaviour in particular, have become a prominent feature of digital
and payment preferences in India. The ease of online banking platforms. These AI-powered virtual assistants
shopping and the availability of a wide range of products provide instant responses to customer queries, offer
have led to a surge in digital payments. personalized assistance, and guide users through various
banking processes.
Mobile wallets, UPI (Unified Payments Interface), and QR
code-based payments have become popular choices for Chatbots not only handle routine inquiries but also facilitate
consumers due to their convenience and security. Moreover, seamless interactions across multiple channels, including
contactless payment methods using Near Field websites, mobile apps, and social media platforms. The 24
Communication (NFC) technology are gaining momentum, / 7 availability of chatbots ensures that customers can
offering a seamless checkout experience in retail stores. access support whenever they need it, improving customer
satisfaction and reducing wait times for service.
Banks are collaborating with e-commerce platforms to offer
exclusive discounts, cashback offers, and personalized Moreover, AI is being utilized for credit risk assessment,
financing options to customers. This partnership between fraud detection, and regulatory compliance. Advanced
banking and e-commerce sectors enhances customer loyalty machine learning algorithms analyse vast amounts of data
and drives digital adoption. to identify potential risks and anomalies, allowing banks to
make data-driven decisions and prevent fraudulent
Customer-Centric Banking: activities.
One of the critical shifts in the Indian banking sector is the
increasing focus on "Customer - Centricity". As competition Wealth Management and Robo-Advisors
intensifies, banks are prioritizing customer satisfaction and Wealth management services in India have also witnessed
experience to retain existing customers and attract new a transformation, driven by technology-driven solutions and
ones. Personalization, convenience, and seamless changing investor preferences. Robo-advisors, powered by
interactions across various touchpoints have become central AI and data analytics, have gained popularity as a cost-
to enhancing customer loyalty. effective and efficient way to manage investments. These
automated platforms offer personalized investment advice
Banks are leveraging data analytics and AI - Artificial based on an individual's financial goals, risk appetite, and
Intelligence to gain insights into customer behaviour, investment horizon.
preferences, and needs. This data-driven approach enables
them to offer personalized product recommendations and While traditional wealth management services still cater to
targeted marketing campaigns. Moreover, digital banking high-net-worth individuals, "Robo - Advisory" platforms
platforms provide 24/7 accessibility, making it easier for provide accessible investment opportunities to a broader
customers to manage their finances, transfer funds, pay bills, audience. They also offer diversified portfolios and real-time
and avail themselves of various services from the comfort monitoring, ensuring a dynamic investment strategy aligned
of their homes. with market trends.

Credit and Lending Landscape
Additionally, customer feedback mechanisms, such as
surveys and social media monitoring, have become crucial The credit and lending landscape in India have witnessed
for banks to understand their customers' sentiments and notable changes, driven by digitalization and data-driven

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