With data analytics and AI, the Banking and Financial Services Industry (BFSI) has employed big data to increase organizational success and assure risk management, profitable growth, and efficient performance. The global market size for big data analytics in the BFSI sector is expected to exceed $86 billion by 2027. The recent expansion in the velocity, volume and variety of banking and financial data has driven the industry to extract insights from numerous sources utilizing data analytics and AI technology. Moreover, in recent years, technology powerhouses such as Google, Amazon, and Paytm have entered the BFSI space by expanding their offerings & creating payment and banking applications.
The pandemic has presented several hurdles to the BFSI business. Implementing a digital transformation, including AI (Artificial Intelligence) and other cutting-edge technology to speed up operations and service consumers without a hitch, has helped firms succeed. The service models on which the industry depended only a few years ago need to be updated. As an industry, businesses must continually innovate to stay relevant and ahead of competitors.
But how are these technologies helping new-gen and established players in the BFSI industry create efficiency and enhance customer service?
- Seamless Customer Service: During the pandemic, the industry’s most significant issue was responding to client demands without errors and providing uninterrupted & timely services. Thanks to AI, institutions can return to inquiries and information and develop services that can fulfil every customer’s needs seamlessly, making it easier for them to get banking services from the comfort of their homes without visiting the banks.
- Interactive Agent: An interactive agent is an AI-enabled tool that assists banks and financial institutions in recognising the context and emotions of clients via text chat and responding appropriately. This AI capability helps BFSI in saving not just time but also money and improving efficiency.
- Speed, Flexibility, and Agility: Unlike traditional banking, AI and data analytics have provided unmatched services with better speed, agility, and flexibility. It has made the system paperless, allowing any information to be instantly retrieved to serve customers. Furthermore, AI has made numerous activities easier for clients, allowing them to carry out various transactions from their homes.
Why does the BFSI sector need AI and Data Analytics?
Bank and financial business relationships with customers are based on trust, loyalty, and personal service. However, as services and products get more sophisticated, there is a greater demand for effective decision-making tools to allow more thoughtful judgements for generating better business outcomes. Viewing documents and figures alone will not impact one’s business. The BFSI industry must use its data to analyze and make better decisions. After analyzing the data, one can determine ways to optimize revenues while improving business connections and customer service.
Data analytics and AI are now necessary components for the proper operation of the banking industry and financial institutions. With the continued development and innovation of banking and financial services, AI will enable BFSI organizations to harness human and machine skills soon to generate cost savings, increase productivity, and preserve safety. It not only empowers the BFSI business by automating the knowledge of employees but also protects the entire automation process from escalating cyber risks.
Begin constructing a data-driven company now so that the industry can better meet client demands.
(The author is Mr. Praveen Paulose, MD & CEO, Celusion Technologies and the views expressed in this article are his own)
