AI & ML redefining customers’ banking experience

Pankaj Gupta

The Indian banking industry’s reform path is well started. Banks have encountered upheaval in the last two years as a result of the epidemic, which has forced them to reformulate their business models as AI has matured. Several industry participants are increasingly shifting away from closed traditional IT systems and toward the cloud. Karnataka Bank Limited, which was founded 98 years ago, has taken on the difficult challenge of implementing and growing digital solutions ahead of the crunch time.

The regulators say depositors’ interests should be the paramount thing for the banking fraternity to ponder upon. With the adoption of Artificial Intelligence and Machine Learning (AI/ML), the banking sector has witnessed tremendous growth and transformation.
From personalisation to cost-effectiveness, from transparency to efficiency, AI/ML has completely reimagined the customer’s banking experience.

Also Read | “There is a higher acceptance of AI and ML models in day-to-day decision-making

We have also launched a tool – “Branch Customer Dashboard”, to take the customer banking service to the next level. We want to empower and educate our customers about various banking and financial services to help them fully reap the benefits of technological evolution in the BFSI sector.

KBL has also introduced mobile banking for NRIs. The bank also recorded a rise in registered mobile banking users from roughly 11 lakhs to 24 lakhs. Currently, about 54 per cent of the bank’s qualified saving accounts are opened digitally using the online capabilities or tabs made available to branches. The bank now offers a digital option for updating one’s KYC and booking safe deposit boxes online.

Operating Profit of Karnataka Bank as of June 2022 – 2.18 per cent year on year growth in operating profit to Rs. 412.78 crore • NIM up by 35 bps YoY to 3.33 per cent • Cost to Income Ratio up by 15 bps to 49.68 per cent.

Karnataka Bank reported a roughly 8 per cent increase in net profit to Rs 114 crore for the June quarter 2022-23, aided by higher core revenue and a decrease in bad loans.
In the previous fiscal year, the private sector lender had a net profit of Rs 105.91 crore.
Karnataka Bank stated in a regulatory filing that total income increased by 0.73 per cent from April to June 2022-23 to Rs 1,762 crore.

Core revenue in terms of net interest climbed 20 per cent in the quarter to Rs 687.56 crore, up from Rs 574.79 crore the previous year.

“We will continue to innovate, build best in class products and processes using agile methodologies, partnering with FinTechs, focusing on UI/UX and increasing AI/ML by
complying with regulatory guidelines. With this focus on technology and digital transformation, the bank endeavours to emerge as ‘Digital Bank of Future”, said Karnataka Bank’s CEO Mahabaleshwara M S. 

Excerpts of Pankaj Gupta, Chief Digital & Marketing Ocer, Karnataka Bank, from an exclusive conversation with Elets News Network (ENN).

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