Praveen Paulose, MD & CEO, Celusion Technologies

Born in 1978 in Mumbai, Praveen completed his schooling from St. Mary’s High School, Mt. Abu (Boarding School in Rajasthan). He completed his Bachelor of Engineering in Computer Science from D.Y. Patil College of Engineering, Mumbai. After a brief period of employment, he became a first-generation entrepreneur when he started Celusion Technologies. The idea was based on the premise that they could build great software but today their software is changing the way people look at finance.

 

During the pandemic, Banking and Financial Services Industry (BFSI) services adopted speedy measures to enable the financial institutions with the pragmatic approach that protected both the employees and clients and helped maintain daily financial operations. This transition allowed the enterprises to identify the vast potential of the digital channels and operational setups and the significance of new value creation from data and analytics.

So far, the current crisis has been less detrimental to the financial industry than other sectors, as stakes in artificial intelligence have been riding high in the banking and finance industry. The strategic implementation of AI applications comprising machine learning, natural language processing, and computer vision resulted in futuristic solutions for banks, from improving employee and customer experiences to enhancing financial operations.

The BFSI sector is undergoing a transition in these unprecedented times, so let’s see how AI is empowering the progress of this sector:

Operational costs reduction

To reduce operational costs, many banks have implemented Auditing solutions powered by AI. The AI auditing assistant segregates and categorizes bank transactions into operational and non-operational cash categories. The auditing solutions comprises AI-driven Audit reporting, Audit planning systems, Role-Based Access Control, intelligent data sampling, and Journal Entry Testing.

Process automation saves time and eliminates error by using machine learning models, which learn patterns from historical data. For example, using OCR (Optical Character Recognition) through deep learning to retrieve data from images and autofill customer information with an accuracy of 99.5%.

Enhanced customer experience

In the past, banking services were synonymous with the long wait, slow banking process, or the unavailability of banking officials. AI has empowered the financial industry with an enhanced virtual assistant by combining natural language processing and natural language generation. Banking sectors have implemented AI-supported Chatbots to imitate human representatives. Often, customers mistake a chatbox for a human representative while communicating online due to its advanced programming. Automated banking chatbots can function perpetually while simultaneously handling multiple customers with repetitive accuracy.

To enhance customer experience, the banks use AI to develop personalized offerings. Banks handle many customers from individual to enterprise, by evaluating the customer’s purchase pattern, saving, and financial attributes, a bank can create personalized products like investment opportunities that will effectively attract more clients.

Safeguarding customer’s interest from fraudulence

AI enables the banking and the financial sector to protect client’s assets from fraudulent credit card transactions through real-time data analytics. On possible credit card fraudulence, the advanced AI algorithms run various variables, like geolocation, product category, amount, customer behaviour, to raise a red flag to the client to verify legitimacy. Enterprises reduce their losses by reestablishing customer feedback into the data model by implementing adaptive analytics through machine learning.

Maintaining regulatory compliance

AI allows the banking sector to comply with the legal regulations to meet the complex risk-based needs of a customer. Advanced AI technology enables the organization to incur acceptable operational risk and avoid large-scale defaults by implementing state-of-the-art analytics that converts data into insights by evaluating issues and improving visualization. Machine learning also enables the banking sector to identify discrepancies in client’s personal and transactional profiles to prevent money laundering by generating and submitting files to the KRA, utilised by the stockbrokers, and CKYC, used by the banks, registry as per regulatory guidelines.

Improved loan and credit system

AI is rapidly developing many intelligent tools that enhance loan and credit systems simultaneously. Implementing AI-enabled analytics to structure loan repayment can consolidate processes, and customer experiences will be vastly improved. AI has improved the evaluation of vast information of the clients for accurate risk assessment resulting in early warning signals which can identify the clients inclined towards defaults. The AI-based digital lending platform helps in swift credit decisions, data-driven assessments and a smart credit decisioning system resulting in a secured risk profile.

Better investment process

AI and machine learning are empowering enterprises to incorporate new information quickly and accurately into their investment portfolio building processes by analyzing data with advanced statistical models to accurately predict future investment outcomes. The investment sector uses corporate website traffic to measure future growth along with clients’ behavioural patterns. AI models are better at predicting market fluctuations that can lead to better investment avenues.

To sum it up, AI is empowering the banking and the financial industry by automating its entire knowledge workforce and will continue to grow and develop with time without much human intervention. Similarly, AI-enabled enterprises are leveraging automation to eliminate cyber risks and competition from the FinTech sector. They can maximize their operational efficiency by delivering customized services and increasing revenue by effectively utilizing human and machine competency. Lastly, AI has become an integral part of the Banking, Financial Services, and Insurance (BFSI) sector’s operations and strategies; hence the benefits are no longer a futuristic vision to achieve.

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