Page 23 - Banking Finance August 2025

ARTICLE

provision of banking services in local languages across vari- ther amplified by integrating voice and vernacular ca-
ous touchpoints, be it mobile apps, interactive voice re- pabilities. Imagine a farmer in a remote village check-
sponse (IVR) systems, or physical branches equipped with ing their balance, transferring funds, or applying for a
language-aware tools. The true power lies in the conver- micro-loan simply by speaking into their phone in their
gence of these two trends, creating a synergistic force that native language, powered by the underlying UPI frame-
is particularly impactful in a linguistically diverse nation like work. This makes financial tools truly democratized.
India. This article will explore how this convergence is not
just a technological upgrade but a strategic imperative for Enhancing Customer Experience and Engage-
Indian banks. ment
In an increasingly competitive banking landscape, customer
The Imperative for Voice and Vernacular experience is paramount. Voice and vernacular banking of-
Banking in India fer a step-change in how customers interact with their
banks:
The accelerated adoption of voice and vernacular banking Y Natural and Intuitive Interaction: Speaking is the most
in India is driven by a confluence of compelling factors, rang-
natural form of human communication. Voice banking
ing from the socio-economic imperative of financial inclu-
offers a hands-free, intuitive way to interact with finan-
sion to the strategic goals of enhancing customer experi- cial services, eliminating the need to navigate complex
ence and achieving operational efficiencies.
menus or type out queries. This ease of use fosters
greater engagement and reduces customer frustration.
Financial Inclusion: Bridging the Divide
Y Hyper-Personalization at Scale: AI-powered voice as-
India has made significant strides in financial inclusion
through initiatives like the Jan Dhan Yojana and the wide- sistants can leverage vast amounts of customer data
to offer personalized financial advice, recommend rel-
spread adoption of UPI. However, a substantial portion of
evant products, and provide proactive insights. Imag-
the population remains unbanked or underbanked, either ine a voice assistant reminding a customer about an up-
lacking access to formal financial services or not fully utiliz-
coming bill payment, suggesting a savings plan based
ing them. This is where voice and vernacular banking offer on their spending habits, or even offering pre-approved
a transformative solution:
loan options - all delivered in their preferred language.
Y Addressing Literacy Barriers: Traditional digital inter-
This level of personalization, previously only possible
faces are often text-heavy and predominantly in English,
through human interaction, can now be scaled effi-
posing a significant challenge for individuals with low ciently.
literacy levels or those more comfortable with oral com-
Y Reduced Friction and 24/7 Accessibility: Voice inter-
munication. Voice interfaces, by mimicking natural con-
versation, eliminate this hurdle, allowing users to inter- actions often lead to faster transactions and quicker
act with banks in a familiar and unintimidating manner.
Y Overcoming the Digital Divide: While smartphone pen-
etration in India is high, effective utilization for com-
plex financial tasks can still be limited due to varying
levels of digital literacy. Voice simplifies this by reduc-
ing the cognitive load and reliance on visual cues, mak-
ing advanced banking accessible even on basic feature
phones. Case studies in rural India have shown voice AI-
powered banking assistants, accommodating multiple
regional languages, leading to significant increases in
rural account openings and customer satisfaction
among first-time banking users.
Y Amplifying Government Initiatives: The success of
landmark initiatives like Jan Dhan and UPI can be fur-

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