BFSI will be the biggest producers of data, and will also be the fastest adopter of ways to utilize this data to create competitive advantage.
The Indian banking sector is standing on a precipice, ready for takeoff. As elsewhere in the world, the BFSI sector has been one of the earliest adopters of technology, and also creating a sharp digital roadmap. With emerging technologies, it is also becoming the highest adopter of analytics and AI. The advantage will only grow as experts believe that the amount of data generated each second will grow 700% by 2020. Clearly, the BFSI will be the biggest producers of data, and will also be the fastest adopter of ways to utilize this data to create competitive advantage.
Its widespread adoption has assured rapid growth for Data analytics in the banking industry. Currently, it is estimated to be $1.2 billion (annual) in revenue. Utilizing the insights created by the analytics, banks and their customers are fast moving towards creating hyper personalized experiences. Turning data into Customer intelligence is the area where they need to be much stronger, to follow profits.
“Till of late, data analytics was aimed at improving the customer service segment and obtaining and providing solutions to customer queries through a self-learnt AI model. However, customer intelligence is areas of focus where banks have still not whole-heartedly tread on. It is also a major area in terms of ROI as well as strengthening the customer base,” says Anand Subramaniam, Head, Artificial Intelligence Practice, Aspire Systems.
Insights form CI (Customer intelligence) helps banks make the smart move that helps them transition from product-centric to customer- centric enterprises. With rapid digitization of banking services, competition is getting much tougher. This is the only differentiator for banks to create a captive market, and sustain it. They need to engage with customers in more meaningful ways, pre-empting market trends and staying a step ahead of the customer needs- even create them with smart customized dialogue.
There is a movement towards this new strategy but Indian banks need to cover some distance before they can compete with the global industry.”Most banks in India and in other parts of the world have implemented chatbots but haven’t moved past that. It is vital that banks aim to introduce customer intelligence and try to understand their customer a little better. It has also been said that banks have data but aren’t able to leverage the data because of the lack of a proper reference architecture or AI/ML model. This is what banks would be looking to focus on and an area which I consider as one of the latest trends that will be tested on,” he adds.Customer intelligence is the future of banking strategy. It will enable the service teams to identify customers who are potential investors, and even who seem dissatisfied, and need extra focus. It would also support banks in cleaning up their act, internally, making the operations more agile, leaner and of course, profitable.The Great Diwali Discount!
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