North India Statesman
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Mumbai: Private banks in the country are leading in using artificial intelligence (AI) for fraud detection, customer segmentation and chat automation.
The asset size of private banks and their capital adequacy ratio provide flexibility for AI adoption. A Reserve Bank report said that the financial condition of private banks makes it easier for them to invest in new technologies.
Financially informed and affluent customers are more engaged with private banks and hence have wider opportunity to use AI-based solutions.
The report also said that private banks, especially private banks with fewer branches, are likely to use AI solutions more to acquire new customers. Because AI remains more cost-effective.
The integration of AI in the financial and banking sector offers many opportunities, but there are also challenges such as lack of transparency and issues of proper use of data.
