India's massive banking industry is shifting towards cognification not just in processing systems but also in reimagining products and customer service. Analysts said the sector has started acknowledging the potential role of artificial intelligence (AI) in redefining the industry.
According to Money Control, businesses in India's finance sector and banking institutions have started enhancing their services through the help of AI applications such as chatbots and virtual assistance. These systems are focused on handling customer queries or complaints.
"AI isn't commonly used in banks or in the BFSI sector. However, chatbots are widely used by banking websites to engage with potential customers," chief growth officer at Capital Float, Tushar Garimalla, said.
In terms of processing systems, major players in India's banking industry are now using various AI-powered applications to redefine processes within the sector. Automation and integration are now more rampant in the sector. Cybersecurity is also among the most common systems that banks and financial institutions have applied over the past months.
Information exchange is common in global finance industries. In India's banking sector, firms and institutions have welcomed cyber defenses that run on artificial intelligence. The purpose of these security systems is to ensure that information sharing goes through safe and secure channels.
It is expected that India's banking industry will continue to expand its use of AI in the coming years. In the Accenture Banking Technology Vision 2018 report, it was indicated that 83 percent of Indian bankers are positive about AI becoming an efficient partner for human workers in the next two years.
Aside from artificial intelligence, India's banking sector has also embraced the potentials offered by blockchain technology. Late last month, Federal Bank India partnered with Ripple Inc. in a bid to improve the bank's payments and processes systems.
After the partnership was confirmed, shares of the private Indian bank soared at a 52-week high. The deal will allow Federal Bank India to access secure cross-border payment and remittance systems that blockchain giant Ripple will offer.
Despite the eagerness in India's banking sector over digital innovations, the Reserve Bank of India (RBI) is still in a battle with the Indian Supreme Court for the former's decision to ban all financial institutions from taking part in crypto-currency projects and initiatives.
Street protests over the last few weeks united crypto developers and other financial firms that believe crypto-related projects should not be banned. Many experts and service providers in the cryptocurrency sector expressed dismay over the government and RBI's decision to block the technology from penetrating the banking industry.
Expansion and wider adoption plans have been stalled and many interested investors have started backing out of supposed blockchain and crypto projects. Developers continue to call for reconsideration while the RBI and Supreme Court have yet to face off again in July.
