Page 44 - BF Cover January 2021.cdr

ARTICLE

products and services. Today digital advertising strategies that technology of AI going stronger and stronger, which
would be impossible without a rudimentary form of AI. will help the customer to have a secure banking experience.

Utility in Credit and Monitoring: In today's low-trust environment, artificial intelligence offers
a new way to tackle financial fraud, build trust, and create
In the past, banks were not able to assess the previous credit a secure financial atmosphere. New forms of AI are being
history of an applicant during their lending process. introduced to catch fraudsters with exceptional speed and
Transunion CIBIL Limited, India's first credit information efficiency. Other potential future applications of AI in banking
company, referred as credit bureau. It collects and maintains and finance lie in the area of customer service and sales of
the records pertaining to loans and credit cards of individuals
financial products.
and commercial entities. In the form of score CIBIL implies
the past repayment history, length of account, types of EASE 3.0(Enhanced Access & Service Excellence), which is
credit facilities and inquiries made by the applicants. It helps PSBs reforms agenda for FY 2020 - 2021. It sets the
immensely in effective deployment of credit through a implementation roadmap for this financial year. EASE 3.0
robust appraisal system and thus ensures the minimum aims to drive transformation in mass banking landscape by
deterioration in quality of assets. Also credit monitoring is way of adopting digital driven services offering backed by
very essential for the Banks to keep borrower's account safe robust IT support system in marketing, loan underwriting,
from fraud and unwanted slippages. AI plays a vital role to monitoring, dynamic rating and best customer services. It
receive early warning signals for the accounts with potential is fully focused on AI as it emphasizes highly on Digitization,
stressed. It may help the banks identify and detect fraud Data Analytics, and Governance etc through all its 5 themes,
cases with higher accuracy and at large scale. 27 Action Points and 38 Evaluation metrics.

Application of AI in HR: In brief EASE 3.0 seeks to enhance ease of banking in all
customer experiences using technology, alternate data
Artificial Intelligence plays a significant role in transforming analytics, Dial-a-Loan for doorstep loan facilitation.
HR and workforce. Some of the applications are illustrated
Credit@click for end to end digitized lending, analytics
below-
based and Technology -enabled Retail and MSME credit
Y It improves relationship between the employees and the outreach and Due diligence through digitally populated
organization.
data. Prudent lending through IT- based system for scoring,
Y It reduces the human bias. rating and pricing of risk. On the spot EASE banking outlets
Y It rationalizes the training need analysis. at frequently visited places like Malls, stations, office
complexes etc. Palm banking, digitalized branch experience
Y It develops conducive workplace learning environment.
and tech enabled agriculture lending are the key highlights
Y Scientific distribution of work amongst employees. of EASE 3.0 action points.
Y Business outcome focused performance appraisal
system. Covid-19 pandemic has accelerated digital transformation
at banks. Pete Swabey, Editorial director of Europe, the
Y Operational requirement based staff deployment.
Middle East and Africa (EMEA) at the Economist Intelligence
Unit (EIU) said "Retail, corporate and banks were already
The future of AI in Banking Sector: under pressure to deploy new technologies quickly and

Now we have understood the benefits and importance of charge their cultures to compete with big tech firms and
AI in banking industry. AI has reached the stage where it is payment players to deliver an engaging digital experience.
sufficiently advanced and affordable to warrant practical Now as digital banking surges as a result of Covid-19 crisis,
implementation in financial services. Banks are busy this task is more pressing than ever".
exploring ways in which they can harness the power of AI
to streamline internal process and improve the customer As per the various reports and survey artificial intelligence will
experience. If we look the development in the field of become the primary channel through which financial
technology, we see that it is getting smarter day by day, institutions and their clients will interact in coming days. Let
this gives us assurance that in the future we can only see us look at some of the areas in which AI will rule in future. T

44 | 2021 | JANUARY | BANKING FINANCE