Page 7 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

more tasks become automated, there is a fear that State Bank of India (SBI)
many banking jobs will become redundant. This can State Bank of India, the largest public sector bank in
lead to job losses and affect employee morale. Banks India, has also embraced robotics. The bank has
need to address these concerns by reskilling and deployed YONO (You Only Need One), an integrated
upskilling their workforce to adapt to new roles that digital banking platform that uses AI and machine
require human intervention and oversight. learning to offer personalized services. SBI's RPA
initiatives have automated various back-office
Regulatory and Compliance Risks functions, resulting in significant cost savings and
The use of robotics in banking also raises regulatory improved operational efficiency.
and compliance concerns. Regulatory frameworks
need to evolve to address the unique challenges posed The Future of Robotics in Indian
by robotic systems. For example, ensuring that AI-
driven decisions are transparent and fair is crucial to Banking
avoid biases and discrimination. Banks must work Increased Adoption and Innovation
closely with regulators to develop guidelines that The future of robotics in Indian banking looks
ensure the ethical and responsible use of robotics. promising, with increased adoption and continuous
innovation on the horizon. Banks are likely to explore
Dependence on Technology more advanced applications of AI and robotics, such
As banks become more dependent on robotic systems, as predictive analytics for credit risk assessment and
any technical glitches or system failures can have blockchain for secure transactions. The integration of
severe consequences. A malfunction in a robotic these technologies will further enhance the
process can disrupt banking operations and impact capabilities of robotic systems.
customer service. Banks need to have robust
contingency plans and disaster recovery mechanisms Focus on Customer-Centric Solutions
in place to mitigate the risks associated with As competition in the banking sector intensifies,
technology dependence. customer-centric solutions will become a key focus
area. Banks will leverage robotics to offer highly
Case Studies: Robotics in Indian personalized services, improving customer satisfaction
Banks and loyalty. AI-driven chatbots and virtual assistants

ICICI Bank will become more sophisticated, providing proactive
support and tailored financial advice.
ICICI Bank has been a pioneer in adopting robotics and
AI. The bank has implemented over 750 software Collaboration with Fintech Firms
robots across various functions, including retail Collaboration between traditional banks and fintech
banking, agri-business, and trade and forex. These firms will drive the next wave of innovation in robotics.
robots handle over 2 million transactions daily, Fintech firms bring agility and specialized expertise in
significantly improving efficiency and accuracy. ICICI's developing cutting-edge technologies. By partnering
chatbot, iPal, handles customer inquiries and with fintech companies, banks can accelerate their
transactions, offering a seamless banking experience.
digital transformation and stay ahead of the
HDFC Bank competition.
HDFC Bank has integrated RPA and AI in several of its
processes. The bank's AI-based chatbot, EVA Regulatory Evolution
(Electronic Virtual Assistant), addresses millions of Regulatory frameworks will continue to evolve to keep
customer queries with high accuracy. HDFC Bank also pace with technological advancements. Regulators will
uses robotic systems for KYC compliance and loan focus on ensuring the ethical and responsible use of
processing, reducing turnaround times and enhancing robotics in banking. Guidelines on AI transparency,
compliance. data privacy, and cybersecurity will become more

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