Artificial Intelligence is changing the face of Indian banking, says Deepak Sharma,CDO, Kotak Mahindra Bank

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The Artificial intelligence (AI) is today changing the way how banks use to operate. The technology is changing rapidly and Al is the one which is standing out as it is real and scalable, says Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank

Deepak Sharma

Today, each customers wants to be treated as a unique customer from any service provider. The data, the interactive relationships with the tools have changed and also the ways the experience customers expects from banks.

Artificial Intelligence is helping the banking sector to grow. Here are some key points:

1.Data: With AI the kind of data that we have is something which we never had. The 90 percent of data which we are looking today has been generated in last two years , so the amount and quantum of data is humungous.

2.Cost : Stock of storage is very low and as per the prediction by next five years it’s going to be near to zero.

3. Computing : The amount of computing that we have seen in the scale up makes it far easier and seamless to look at the large set of data, store it and compute it at a fraction of seconds. Whether we compute it on the edge or on the cloud.

Talking about the threat financial services have today, he said they are no real threat except authentication, fraud detection or real time transaction approval. As now we are dealing with tons of data which are of real time and the regulators wants to have a look at it, the things which will create value for the firms and are extremely important are the audit control, fraud risk, early warning system, predicting the fraud or the intent of the fraud in real time.

The fundamental shift we are witnessing today is the change in the business model. There was a time when banks expected customers to come to them for loans, but today credit is available at the point of consumption.

The firms of the futures are realising that you need to connect to an ecosystem where there is consumption or point of sale is. If point of consumption is known to a bank and if the decision can be given real time they can flourish, he said.

We have launched open banking platform an year back, it is presenting a very different opportunity again because the prediction is in next five years more than 50 percent of the transactions will not originate from the banks own network.

As bank becomes more of a service, we need to start thinking about how we going to make Application programming interface (API), to make it more resilient, to guard in terms of security, access, protocol and how we going to monetise these services. This in turn will make banks more of a tech company rather than just financial services, this will help the future firms to connect better with their customers.

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