Faced with a deluge of consumer complaints, India’s central bank is urging financial institutions to embrace the transformative power of artificial intelligence (AI).
Central bank governor Sanjay Malhotra believes that AI-driven internal controls can be strategically leveraged to address a growing tide of grievances related to mis-selling and aggressive practices within the banking sector.
The sheer scale of the problem is undeniable.
In the financial year 2023-2024 alone, a staggering 95 commercial banks across India received over 10 million customer complaints, according to Malhotra.
This alarming figure underscores the urgent need for innovative solutions to enhance customer service and streamline grievance redressal processes.
“With the rapidly growing customer base and expanding suite of products, this may grow if we do not get our act together,” Malhotra cautioned, highlighting the potential for the situation to escalate further if proactive measures are not taken.
Malhotra’s vision involves harnessing the capabilities of AI to proactively identify and address potential issues before they escalate into widespread complaints.
In a recent speech, he outlined how financial institutions can utilize AI to analyze vast quantities of data, enabling them to detect early warning signs of problems such as ATM failures or erroneous charges. This proactive approach would allow banks to take corrective action swiftly, minimizing disruption and preventing customer dissatisfaction.
AI-powered communication
Beyond problem detection, AI can also play a crucial role in enhancing communication and accessibility.
Malhotra pointed to the potential of AI-driven chatbots and voice recognition tools to eliminate language barriers in a linguistically diverse country like India.
By providing customer support in multiple languages, banks can ensure that all customers, regardless of their linguistic background, have equal access to information and assistance.
While advocating for the adoption of AI, Malhotra also emphasized the importance of investing in human capital.
He stressed that technology alone cannot solve all customer service challenges and that skilled and empathetic staff are essential for providing personalized support and resolving complex issues.
The ideal solution, according to Malhotra, involves a strategic blend of cutting-edge technology and human expertise.
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