Over 50% Indian consumers trust banks to use Gen AI on personal, financial data

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As many as 52 percent of Indian consumers would be comfortable with banks extensively using Generative Artificial Intelligence (Gen AI) to analyse their personal and financial data, in order to receive tailored products, an analysis by IT services firm Accenture has revealed.

About 88 percent users said they would be open to using an AI-powered financial assistant to help with tasks like ensuring they don’t miss payments and to avoid late fees, as well as to monitor account balance.

However, a majority of consumers also said they are concerned about how banks use their data.

The analysis is based on Accenture’s biennial Banking Consumer Study that surveyed 49,300 respondents across 39 markets on their banking preferences and behaviors, including 2,000 in India.

Manoj Singodia, lead - financial services, Accenture in India, said that as Gen AI becomes more mainstream, addressing consumer concerns around privacy and security will be essential.

Nonetheless, over 70 percent of respondents in India like seeing branches in their neighborhood as it confirms banks’ stability and availability, while 73 percent turn to branches to solve specific and complex issues.

The report suggests there is an opportunity to selectively replace in-branch experiences with digital channels.

More than half of consumers in India, 58 percent to be precise, feel pushed toward products that seem to be more beneficial for banks than for them. This can erode trust and make customers hesitant to engage with their bank, the survey said.

Customers often feel overwhelmed by the multitude of options available, and are frustrated by the effort required to decide on the best choice for their needs. Offering hyper-personalised products and services, along with customer journey support, product features and terms and conditions guidance, can help banks differentiate their services, the analysis said.

The study recommends that banks focus on four key drivers to build customer advocacy and address the eroding loyalty: trust and transparency, personalisation, seamless customer service and channels, and competitive financial benefits.