Financial products, customer touchpoints and channels are being digitized with AI powered automation to improve existing processes, create new business models, manage risks, improve regulatory compliance and transform customer experience. However, they need scale and nimbleness to stay resilient and deliver sustainable benefits.
The new normal of social distancing are creating roadblocks in the banking growth story. Customers are now expecting banks to connect the gaps of offline and online financial convenience. Indian banking industry needs to deliver a radical transformation of customer experience and respond to swiftly changing customer and community needs and demands. A great starting point is digital account opening, onboarding and lending. Traditionally, there is heavy involvement of operations starting from application to closing. The whole journey involves operational teams of loan officers, processors, underwriters, quality assurance and control, and sanctioner who took 20 days process on one account. The golden age of instant gratification For customers: Digital transformation is empowering customers to seamlessly engage with their banks through integrated digital channels anytime anywhere. These platforms coupled with AI driven process are enabling mass personalization and extreme self service contributing significantly in delivering instant response, fulfilment and delightful experience for customers. For instance, a customer today can open a full service account or get a loan instantly from the convenience of his home 24x7 powered with video eKYC, fraud detection and even instant cross sell offers. There is zero human intervention needed. For bankers:Digital is eliminating operational siloes by unifying the functions of loan officers, underwriters, processors and compliance on a single platform. Automated decisioning backed by intelligent algorithms and robotic underwriting based on predefined parameters along with integration with rating agencies gives an accurate portrait of a borrower’s credibility and reduce manual errors and reviews. Only deviations are escalated for manual review, thus reducing time, costs and efforts.The rapid adoption of digital first approach is delivering significant improvement in customer experience, operational efficiency and process visibility that aids in transparency. Banking leaders who have adopted digital strategies areexperiencing:40% increase in profit from a combination of increase revenues and lower operational costs.15% reduction in loan origination costs.40% reduction in manual interventions.Reduction in loan processing time from days to mere minutes.Deeper integration of banking in customer lives and mass customization with growing focus on partner eco-systemBanking industry is spectacularly embedding itself deeper into customer lives through vertical integration with Partner APIs. Thanks to smarter use of third party partner APIs, Indian banks are increasingly differentiating their offerings by targeting very specific customer journeys and segments.Bankers can analyze customer's transactional data to determine which available financial product offerings are most relevant and personalized to that particular customer, such as a higher benefit credit card, customized loan products or high interest savings account. Customers can also get better control over their finances with customer specific APIs can deliver individually tailored information like account alerts, bills due and payments and pocket fund transfers.Seamless integration and analytics power the core of this banking partner API revolution. With the right strategic approach, banks can significantly boost business and grow customer acquisition. However, the industry also needs to take precautions in case of failed services.The need to democratize AI adoptionThe rapid ascend of AI and machine learning have divided the banking technology experts. There are those who argue that machine learning brings limited benefits to banks on the table and the existing trove of individual customer and credit data, analytical models is more than enough to derive maximum intelligence.AI advocates, on the other hand, are convinced that there are still undiscovered characteristics of customers that can be profitably mined with the right machine learning models. Every bank has done some kind of AI experiment.However s transforming into an AI-powered organization would involve Indian banks to fundamentally change their banking operating model to embrace data and becoming digitally native at the core. They’ll need to develop tailored analytics and redesign processes, and revamp their technology architecture to make sure that they have the capabilities to support resource and data-hungry AI systems.Bankers can exist business-intelligence from their treasure trove of customer data, from dashboards to visualization; to set in motion AI enhanced product offerings and customer service.Such kind of leverage not only drives excitement for digital adoption but also delights customers to innovative new personalized financial products.
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