Page 30 - Banking Finance April 2022

ARTICLE

3. Management of Fraud- By knowing the usual spending Conclusion
patterns of an individual, the bank can raise a red flag
if something unusual happens. If there is unexpected Artificial Intelligence and data analytics constitute significant
elements of the Banking sector today, given its reassurance
increase in the expenses of a customer, this may indicate
that the card was stolen and used by fraudsters. Cutting of refined and extended customer satisfaction, operational
down the risk of fraudulent actions is possible by digitization, minimising cyber risks, and transaction
analysing these types of transactions in real-time. transparency for improved customer-relations. Artificial
Intelligence is still in the beginning stage and there is lot of
4. Management of Assets - Banks can track the past
usage patterns and the daily transactions at their scope for deployment of these software in various Banking
jobs in the coming years.
branches and ATM's, hence predicting the future needs
of their potential customers. This will help in optimal
management of the liquid assets which can result in Also, to gain a competitive advantage, banks must
extra income. acknowledge the crucial importance of data analytics,
integrate it in their decision-making process, and develop
5. Winning over Customers- Customer's lifetime value is
how long the organizations are able to retain their strategies based on the actionable insights from their
customers. Predictive analytics helps to know which client's data.
customers should be focussed for engagements and use
that knowledge to understand why customers References
responded to certain messages and promotions. 1. https://www.mindtitan.com
6. Improving through Feedback management- Predictive 2. https://www.mckinsey.com
analytics allows banks to keep up their relationship with 3. https://soulpageit.com
the customers by giving them the right services and
products for their needs and matching individual 4. https://www.wipro.com
preferences in the most sorted way. 5. https://expressanalytics.com

World Bank India head to be MIGA's VP Operations
The World Bank's India head, Junaid Kamal Ahmad, has been appointed as one of the vice presidents of the global
lending institution. Ahmad -- who as Vice President, Operations would head the Multilateral Investment Guarantee
Agency (MIGA) -- is the second Bangladeshi national to be appointed to such a high position in the history of the
bank. Ahmad, 61, will assume his new role from April 16, an official release said. He has been the country director
for the World Bank in India since September 2016. Fayez Choudhury was the first Bangladeshi national who became
the vice president on the administration side.
In his new role, Ahmad will work to advance and enhance MIGA's brand partnering across the World Bank Group
and with financial institutions, private investors and development actors; originate and pursue meaningful, iimpact-
drivenprojects and lead the Operations team to deliver on MIGA's mandate of mobilising private finance for devel-
opment projects in Emerging Market Developing Economies, the bank said in a statement.

Small Finance Banks gain 8% incremental market share
Small finance banks are gaining energy with them getting 8% incremental market share whereas their total share
remains to be round 1%. In the previous three-and-a-half years, SFBs have delivered a strong 42 % compound an-
nual development charge (CAGR) adopted by private banks at 13 % and overseas banks 8 % whereas mortgage
development for public sector banks was at the bottom at 2 % throughout the identical interval.
This displays the demand for small ticket loans in rural and semi city pockets - sometimes the main target space for
SFBs - and in addition reveals that large lenders are focusing solely on high rated credit score. These banks take
pleasure in robust credit score market share at over 2 % in semi-urban areas. SFBs have created a distinct segment
place in small-ticket loans (which account for about 40 % of whole SFB loans) and are regularly getting into into new
credit score merchandise, ICICI Securities stated in a report.

30 | 2022 | APRIL | BANKING FINANCE