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Adoption of artificial intelligence will help banks reduce risks, improve customer access to services – Times of India

HYDERABAD: Rooting for a higher adoption of artificial intelligence (AI) technology in banking sector, a white paper released by Hyderabad-based Institute for Development and Research in Banking Technology (IDRBT) and Microsoft India on Friday said the adoption of AI by banks will help them scale up operations, achieve higher profitability by reduction in risk and improve customer access to its services. The paper titled, ‘AI in Banking: A Primer’, was released by Saurabh Mishra, joint secretary, department of financial services, ministry of finance, virtually in the presence of Microsoft India executives and IDRBT members. The paper stated that AI can be deployed in banks across a range of functions for improving overall customer experience, making more informed decisions on credit underwriting, detecting frauds and defaults early, improving collections and increasing employee efficiency. “There are some challenges that need to be addressed to increase the adoption of AI in the Indian banking and finance industry. These include training existing manpower in new skills, making the current banking processes adaptable with AI, increasing the capacity of customers to use AI systems and ensuring data protection and privacy,” it said. With the use of AI, banks can offer customers – especially those in rural areas who are presently unable to access the desired levels of banking benefits – greater access to banking facilities, credit options, and wealth management products, it added. AS Ramasastri, director, IDRBT said, “AI in combination with Cloud Computing, IoT, Blockchain, 5G and emerging technologies will increase customer experience and agility in product release. We are confident these technology collaborations will draw synergies across stakeholders,” he said.