INSIDE BANKS OF THE FUTURE, RUN BY BOTS

Indian banks are using AI to reduce costs and risks. And GenAI pilots are showing promise

- Leslie D'Monte

When I set out to write this story, I wanted to check out the chatbots Indian banks use. My first stop was ICICI Bank, India’s second-largest private bank by assets. I clicked on ‘Ask iPal’, the bank’s omnichannel bot, one the bank says can "redefine your banking experience" and is a "conversational way to make your transactions". The bot greeted and prompted me to ask something in English.

"I need to open a savings account," I typed. "Thank you for your interest in opening a savings account with ICICI Bank," it responded, before providing a link to the application. Next, I was prompted to respond with either a thumbs up or thumbs down emoji. My question about wanting to open a demat account met with a similar response, and a link to more details.

The going was good. But I decided to have some fun.

"How should I manage my money when dating?" I asked. "Sorry, I am not sure if I got that. Could you please try rephrasing your question?" I tried again, adding a few more words. "Where should I park my money after getting married? Should I choose fixed deposits or SIPs (systematic investment plans)?"

The bot responded with some suggestions, but it was not the advice a human financial adviser would offer. One of them was an advisory on how to open a fixed deposit. By now, I had realized that I had exceeded my brief.

To be fair, the bot has been asked stuff which is outside its traditional banking syllabus. iPal, nonetheless, is one of the newer generation bots-it is an artificial intelligence (AI)-based system. All answers are automated and the chatbot is trained to understand the queries and improve the responses. As more people interact with the bot, it learns. Over a period of time, the bot would get sharper and more intelligent.

It is quite likely that in a year, iPal would be able to understand and answer questions beyond its syllabus.