Efforts taken by the Reserve Bank of India to draft initiatives that are in favour of adopting new technologies have been serious. To bring the country at par with its global counterparts in terms of inclusion of emerging tech, RBI has also placed focus on modernization along with its usual regulatory and oversight functions.
What kind of technologies? A strong shift to the internet from physical spaces has led to the innovation of Mobile Banking, Cardless transactions, Anytime Anywhere Banking, etc. It has also given space for superior technologies such as Biometric-based transactions, Robotics, AI Bots and Blockchain to enter banking.
Customer preferences have always been pivotal for all businesses and banks are no different. To achieve the highest level of customer satisfaction, the process needs to be made simpler. Technology is that tool that helps a bank ease their process and bring in more users.
Banks in India have been using these technologies for success:
Available for service 24*7, mobile banks process their services on any platform that has access to the internet such as mobiles, iPad, tablets, etc. These banks offer regular banking services of opening accounts, insurance, mutual funds, loans, etc. For digital banks to grow, there are major security concerns that need to be addressed. Once there is a confident solution for security issues, the adoption of this technology would be tremendous.
National banks like ICICI and HDFC have their own verticals of Digital Banks. DBS bank would also be another example of the same.
Addressing the above problem, biometric technology would come as a promising solution to security issues. The move towards digital banking is inevitable and hence, biometric technology is exceedingly used in the system. Instead of passwords and pins, biometric authenticates an individual by scanning their fingerprint, face, retina, voice, etc. For Indian Banks, Aadhaar verification would be facilitating this system.
Chatbots and Virtual Assistants are popular in the banking sector as well. AI is extremely useful in building models that are specific to individual preferences based on the data it has collected. PNB MetLife has been using an AI-powered customer service App called “KhUshi” which has the ability to understand language by speech or text and provide assistance to customers. State Bank of India also embarked on an AI journey by introducing SIA Chatbot that addressed customer queries.
Blockchain or distributed ledgers can be used for banking operations such as money transfer, record keeping, and back-end functions. Due to blockchain’s high-security characteristic, it can be useful for managing documents, payments, securities, and trade finance. The possibility of fraud will be significantly reduced with this technology and also help make the banking process more transparent.
The Indian Banking sector will have to infuse physical and digital banking to sustain in the coming decade. As the fintech space grows, a need to reduce the cost of operation, bring in more customers and keep them happy would be crucial. Hence, adopting innovative technologies would be the way forward for Indian banks.
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