LEVERAGING DIGITAL BANKING THROUGH AI – INDUSTRY IMPERATIVE FOR COMPETITIVE ADVANTAGE & SUSTAINABILITY

Since the last decade, the banking and finance industry has been actively pursuing the research and use of AI technologies to gain a competitive advantage in terms of customer data management for effective decision making.

- Mukti Prakash Behera

Introduction

Now banks are increasingly deploying, implementing and leveraging AI and ML technologies to carve value-based competitive advantage. Currently, the landscape of Artificial Intelligence includes technologies related to natural language processing and natural language generation resulting in several Chatbot initiatives by various banking and financial actors. What is essential is to comprehend that these technologies automate raise the efficiency of financial decision making for a variety of issues including, transactions, credit-scoring, fraud detection and wealth and risk management. Basis these advantages banks and financial institutions are relying on machine learning to devise new business opportunities and deliver on-demand customer services.

Across several industry domains, Artificial Intelligence is the fast-developing technology and the banking and financial sector is becoming one of the first adopters of Artificial Intelligence. To achieve a competitive advantage, banks and financial institutions are increasingly integrating artificial intelligence to the business model to analyse data for effective decision making. The article primarily discusses the usage, opportunities and the road ahead for AI and ML integration in the Indian banking industry.

The Rise of AI and ML in Banking