Page 26 - BF Cover January 2021.cdr

ARTICLE

Figure: 3 Omni-Channel Banking:
Besides the availability of banking facilities in mobile apps,
Mobile Devices Usage in Billion
the same should also be available in desktops, on phone
8 calls, and at bank branches. 65% of businesses think that it
7 is essential to have a live engagement platform available
6
5 on all devices and operating systems.Also, customers like to
compare services offered by banks on online and offline
4
3 platforms as well as from social media channels. They do
2 not want to be forced to use a particular channel advised
1 by banks as per banks' convenience.
0
2013 2014 2015 2016 2017 2018 2019 2020 For example, onec an easily contact the call centre while
Courtesy: Infosys driving a car where writing messages on chatbots will not be
a feasible option for him. Detailed discussions on corporate
loans of large amounts need face to face discussions with
Utilising the real-time data from smartphones, banks design
suitable products and rewards for its customers. ATM is the banking professionals for better understanding the financial
oldest version of IoT in the banking sector. The data on usage needs of the applicant. Measurement of the customer journey
of ATM in an area enables banks to decide whether to increase through all possible channels will indeed allow banks to have
or decrease the number of ATMs in a particular geographical an insight on customer behavior for offering customers with
location. Data of card-swiping is a significant enabler for the finest experience.
analyzing customer's spending habits. An entrepreneur's data
from the IoTs he uses can give an insight to the demand and Artificial Intelligence, Machine Learning:
supply value chain of the customer and banks can offer him The Chatbot is the new alternative of the FAQ section and a
discounts on business loans, or competitive price for tax and substitute for call centres. The long waiting time at the call
accounting services. Hence the best customer experience can centres is easily replaced by chatting. These AI-enabled
be offered by having a 360° view of customers' financial chatbots pull information from various sources like bank's
behavior and upon analyzing its pattern. knowledge base, transaction records of customers and
navigate customers to the required page, and if the
Now financial products are pushed in the customer's smart navigation is not able to provide a suitable solution, the chat
phone or wearable gadgets depending on the analysis of is taken over by a live service representative.
direct and indirect data gathered from customer's browsing Smart chatbots use natural language processing and machine
history on bank's websites, types of videos watched on
Youtube, etc. Sometimes, offers are sent in customers' phones learning to provide customers with a more humanised
interaction experience. AI improves customer experience
right on entering a bank branch premises. Credit cards with further by giving money management tips. Erica of Bank of
suitable limits are offered by analysing the shopping pattern
of the customers. Extending discounts on purchases made with America, Amex bot of American Express, SIA of SBI, Eva of
HDFC Bank are a few examples of modern chatbots.
the card further enhance customer experience. A reminder
of redemption of cash reward points, travel rewards, allowing Customer experience improved in availing credit facilities from
to check credit scores makes banking experience exciting. the bank as machine learning and AI have improved the retail
credit process by application of more efficient
Bank's main branch is in customer's risk modeling, finer predictability of credit early-warning system.
hands:
Blockchain to improve security:
Under the above- mentioned scenario, today banks have to
believe that their main branch is resting in the Smartphone Customer experience cannot be superior if their money is
devices of its customers. Banks have to redesign their stolen by the fraudsters. The Financial Cost of Fraud Study,
systems in such a way that smart phone, laptops can play 2019 estimated the global cost of financial fraud to be $4
the role of a bank teller, an ATM or a financial advisor. Today trillion globally. These concerns are now being increasingly
banks are increasingly focusing on offering end to end digital addressed by the banks. Better customer authentication is
on-boarding of their customers. provided by blockchain technology. Business Insider report

26 | 2021 | JANUARY | BANKING FINANCE