A fundamental shift is happening in the financial industry. Heavy ledgers and laborious calculations were used at first; computers and the core financial system quickly took their place. Your transactions have moved from an ATM to a UPI, and you are now in a linked world. Yes, thanks to demonetization, which gave you the incentive to move toward a more cashless society.

Even if network access has not yet reached the far reaches of India, mobile penetration has revolutionised the way transactions are conducted, ushering in a period of transition even though we are still behind. This is because of the Millennial generation, who demand instant gratification and switch service providers (in this case) if they are not met.

How does AI help in banking?

Hence, the banking industry is facing tremendous competition for customer retention. And, to retain the numero uno position you need to be a differentiator. Positioning the bank with the right product will not earn a profit; it is important that you serve the customer with a smile swiftly. In order to do that; it’s time that the banks are now focusing on leveraging Usage of Big Data Analytics Artificial Intelligence and Machine learning to better customer experience

Big Data Analytics

The economy is deluged with huge sets of information; both structured and unstructured. Traditional database and software techniques have their limitations and it is here to address the 4 Vs: Volume; Velocity; Variety & Veracity that the field of Big Data emerged. Today, big data will be used for predictive analytics; to spot business trends; use behavior analytics for understanding consumer patterns,s, and help increase business manifold.

Now, the next question is you have acquired customers but how do you ensure seamless and accurate customer service? This is important from the aspect of customer retention OR else your business will again be a leaking bucket. Today, banks have started using chatbots but again it has its restrictive usage.

Future of banking and AI

It only works by answering one question at a time. The other limitation is predetermined questions that are fed into chatbots and that makes interaction very monotonous. Today with Artificial Intelligence and Machine Learning banking industry is set to think big. It is the time that Virtual Agents is expected to take customer service several notches higher up.

There will be different ways by which these virtual agents will enhance the experience starting from analyzing reports; providing tailor-made answers; working out the advisory role to providing customer support services with relevant solutions. It is a technology and cognitive approach that will enhance the banking experience in a different way. Be the differentiator being the first mover.