Many variants of Artificial Intelligence (AI) like Robo-Advisors and Machine Learning are already adopted by financial companies outside India. Inspired by these practices around the world, banking and financial service companies in India are jumping in the automation bandwagon at good pace. Having recognized its value, they want to grab all its possible benefits. Some of them being value addition and cost reduction. Along with this, it can be used to enhance the company’s services and refashion finance in a customer friendly way.
Let us see how the India is making its best attempts.
- Software Robotics: ICICI Bank became the first bank in India to introduce Software Robotics on 8th September 2016. It was introduced in over 200 business processes in the Bank like in retail banking, foreign exchange treasury and human resource management and so on.
- Chatbot: HDFC Bank tied up with an AI firm, Niki.ai to transform its operations. On 5th March 2017 it launched an artificial intelligence-driven chatbot called electronic virtual assistant (EVA).This will be used for improving customer services by answering customer queries in a faster way. It is India’s first AI-based banking chatbot and tackles millions of customer queries across numerous channels instantly.
- Fintech Companies: Many new Fintech start-ups are gaining popularity in India. The main motive behind their launch is the increasing need for molding the traditional banking practices and offer customers a new improved easy to use funding interface. Mobile Wallets, E-commerce, Online Lending Platforms for SMEs and various other types of start-ups are flourishing in modern India. One such company, CapitaWorld, an Online Fund Raising Platform, is using algorithms and machine learning to change the future of the Banking Industry.
The attempts taken are not going in vain. The support of the external environment (government and regulator) is favoring them.
- Government Initiatives: The initiatives taken by the government become absolutely necessary when we make changes in a highly regulated industry like banking and finance. The Start-Up India initiative, launched in 2016, aims to lift up the start-ups struggling with unmet financial needs and high competition. The Digital India initiative supports the expansion of digital infrastructure in India. These steps taken in the past few years make it evident that the government is onboard with refashioning Indian Finance.
- Support from Regulators: The regulators are also giving their best possible assistance. The launch of ‘Unified Payment Interface’ with NPCI (National Payments Corporation of India) aims to achieve the Cashless Society – India’s new dream. Further RBI is planning to regulate the P2P lending platforms and make them register as NBFCs. All these steps are taken to accept the idea of moving on from the conventional methods of finance.
The world now lives on the Internet and it wants the financial market platforms to reside near its new home. Fintech Start-Ups are sure to become the next big shots in the industry. AI revolution is taking place all over the world and India is blessed to be a part of it!