The AI Revolution: Will Indian Banks Sink or Swim?

We all know that AI is poised to transform everything from customer service to fraud detection. But a new report fromCleverTap reveals that India’s banking sector struggles to keep up despite being early to the AI game.

Based on a survey of 50 senior executives, the report found that 57% of banks have yet to achieve a unified customer view. This means they cannot bring together all the data they have on their customers from different sources, such as their website, mobile app, and CRM system. As a result, they are missing out on the opportunity to use AI to personalize the customer experience and drive revenue growth.

“Banks have often played catch-up when it comes to tech innovations,” says Jacob Joseph, vice president of data science at CleverTap. “But customer familiarity with digital solutions is making it clear that banks need to bridge this divide quickly.”

The report highlights several challenges that Indian banks face in adopting AI, including:

• Data silos: Data is often spread across different systems and departments, making it difficult to access and analyze.
• Cost constraints: Implementing AI can be expensive, requiring new software and hardware investment.
• Lack of skills: Many banks lack the in-house expertise to develop and deploy AI solutions.

Despite these challenges, the report also highlights the significant opportunities that AI offers Indian banks. For example, AI can be used to:

• Personalize the customer experience: AI can tailor products and services to individual customers based on their past behavior and preferences.
• Improve operational efficiency: AI can automate fraud detection and customer service tasks.
• Drive revenue growth: AI can identify new sales opportunities and cross-sell products and services.

Bottom line

The report concludes with a call to action for banks to embrace AI and transform their operations. “For banks aiming to stay competitive in a digital-first world, AI isn't optional — it's essential,” says Joseph.

Banks that fail to embrace AI risk being left behind. Those who succeed can deliver a superior customer experience, improve operational efficiency, and drive revenue growth.

Image credit: iStockphoto/BeritK