AI in banking

AI in banking now geared for a takeoff

by | Aug 3, 2020 | Artificial Intelligence, Artificial Intelligence

Having tasted initial successes with chatbots and other virtual assistants, Indian banks are now geared to get bolder with AI.
Share to lead the transformation

Digital disruption is impacting every industry and transforming the ways of working. The traditional models are slowly waning, and trailblazing technologies are emerging. In the age of cloud computing and internet applications, services like telegram and postcards are things of the past. Banking too has endured many changes over time while implementing several new technologies to facilitate faster transactions and on-the-move banking with just a few clicks. AI in banking is taking transformation to a new level.

The unprecedented Covid-19 scenario, which has compelled many to stay at home, has further pushed the banks to explore innovative banking solutions and create a differentiation strategy for the convenience of their customers. Artificial intelligence (AI) is one of the most powerful technologies that has been helping the banking sector to drive several of these new-age innovations.

Driven by the benefits of predictive analytics, voice recognition, and advance human learning capabilities, AI technology enables banks to provide a customized experience to their customers, strengthens compliance, and delivers a secure digital payment ecosystem across a plethora of channels. It helps manage an enormous amount of data at a rapid speed, and empowers them to comprehend detailed insights from it, providing a better understanding of their customers and behaviors.

Globally, tools such as conversational chatbots, virtual security assistants, fraud detection, and face recognition are being widely used to drive meaningful customer engagement. If we look at the Indian market scenario, banks are waking up to the benefits of AI tools for both back-office and customer interfacing functions.

Let’s look at the AI journeys of some of the leading banks.

HDFC Bank

In 2017, India’s leading private-sector bank deployed an AI-based conversational chatbot called Electronic Virtual Assistant (EVA). In less than three years of its deployment, EVA, designed by Bengaluru-based Senseforth AI Research has claimed to have helped HDFC respond to over 5 million customer queries with more than 85% accuracy. The tool uses natural language processing and is now also available on the Google Assistant platform. It provides the relevant answers to users by scanning thousands of HDFC website sources in just a few seconds.

Chatbots like EVA help fetch relevant information very easily without letting users navigate the entire website or getting into a painstaking effort of waiting on a call. In addition to EVA, the bank has also deployed several AI-enabled tools in risk management, credit scoring, employee engagement, and onboarding in the last few years. It uses OnChat, which works on Facebook, to help with all kind of bill-payments. HDFC is also testing various in-store robotic applications.

State Bank of India

Despite being a public-sector bank, SBI is known to be aggressive in terms of leveraging the latest technologies. The company’s banking dashboards are considered to be one of the best in the industry. In terms of AI-enabled solutions, the bank’s facial recognition solution, developed by Chapdex, the winning team from its first hackathon Code for Bank, helps it analyze and understand the feedback of its customers through their facial expressions. The solution is installed in the branch cameras and collects impressions of customers to identify if they are delighted from their bank visits or not.

The Fortune Global 500 bank has been also leveraging the benefits of SBI Intelligent Assistant (SIA), an AI-powered chat and voice assistant, to answer the customer queries promptly. Developed by Payjo, a startup based in Silicon Valley and Bengaluru, the solution has helped SBI reduce a considerable amount of operational costs since its launch in 2017. The solution interacts with customers to address queries and tasks related to everyday banking just like a bank representative.

The company has also recently entered into a pact with Microsoft to develop an AI-powered marketplace aimed at helping the banking, financial services, and insurance (BFSI) industry to connect people living with disabilities for upskilling and employment.

Axis Bank

Mumbai-based country’s third-largest bank, Axis Bank, has built two AI solutions that have made life easier for its customers. Its bot, ‘Simply Ask Axis Aha’ aims to bridge the gap between customers and the bank. Users can access the tool through Axis bank mobile app and use a conversational approach to transfer funds, pay bills, recharge, generate banking statements, or enquire about the latest Axis products and services. The bot acts as a conversational assistant to resolve queries of all kinds.

Very recently, Axis has deployed a voice-based conversational bot or automated voice assistant AXAA. The solution operates like a humanoid and claims to deliver far better results than a conventional interactive voice response (IVR) system. According to the company, the solution will assist customers to traverse through the IVR and address their queries and requests, without the need for any human intervention in most cases. Interestingly, the solution can converse in English, Hindi, and Hinglish, and has the potential to address about one lakh customer queries per day.

ICICI Bank

ICICI has been heavily focusing on AI-enabled robotic process automation (RPA) technology for process improvement. The RPA technology enables businesses to automate high-volume, tedious, and time-taking tasks that doesn’t require much human intervention. It has already deployed RPA technology on over 1,200 business processes such as customer onboarding, loan processing, and reconciliation, among others.

The bank also has and AI-powered Chatbot, iPal, that has recently been integrated with Amazon Alexa and Google Assistant. The solution provides an array of retail banking information such as account details, account balance, transaction queries, and credit card details among others through a simple voice command.

Though still at a nascent stage, and mostly restricted to chatbots, Indian banks are now experimenting with several new AI ideas to transform the traditional banking experience. In the next few years, the role of AI is expected to be evolved significantly. A special focus will be on developing customized solutions for customers and designing software based on cognitive fraud analytics. Punjab National Bank (PNB), for instance, has already deployed AI for reconciliation of accounts and to strengthen its internal audit control mechanisms. A number of banks are likely to use AI to detect suspicious activity. Through real-time behavior profiling, distrustful activities of banking users will be immediately reported and blocked for fraud prevention.

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GST on all EVs and charging slashed to 5%

GST on all EVs and charging slashed to 5%

electric vehicle charging

GST rate on charger or charging stations for EVs is cut from 18% to 5%. (Representative Image)

The 36th GST Council Meeting held in New Delhi via video conferencing under the chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman, took the most awaited decision on electric vehicles. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Anurag Thakur besides Revenue Secretary Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The Council has recommended the following:

  • GST rate related changes on supply of goods and services
  • The GST rate on all electric vehicles be reduced from 12% to 5%.
  • The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
  • Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.

These changes shall become effective from 1 August, 2019.

Govt using satellite imagery for assessing crops

Govt using satellite imagery for assessing crops

assessing crop data

Representative image.

Pradhan Mantri Fasal Bima Yojana (PMFBY) envisages use of improved technology to reduce time gap for settlement of claims of farmers. Accordingly, the Department of Agriculture, Cooperation and Farmers Welfare, through Mahalanobis National Crop Forecast Centre (MNCFC), involved 8 agencies/ organizations to carry out pilot studies for Optimization of Crop Cutting Experiments (CCEs) in various States under PMFBY. The studies used various technologies, including Satellite data, Artificial Intelligence, Modeling tools etc. for reducing the number of CCEs required for insurance unit level for yield estimation. The studies were taken up to address a major issue of the need to carry out large number of CCEs for calculation of yield data vis-à-vis claims at Gram Panchayat level. The results are being evaluated for providing recommendations for their implementation in the upcoming seasons.

Further, an Expression of Interest (EOI) was floated with a view to migrate to technology based assessment of yield with minimum use of CCEs for Kharif 2019 season. 46 agencies participated in the EOI, out of which 26 agencies have been shortlisted on technical assessment.

The Government is also using satellite imagery to assess the crop area, crop condition and crop yield, at district level, under various programmes such as Forecasting Agricultural Output Using Space, Agrometeorology & Land based observations and Coordinated Horticulture Assessment and Management using Geo-informatics. Further, satellite data is also being used for drought assessment, to assess the potential area for growing pulses and horticultural crops.

With a view to ensure better transparency, accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly, the Government of India has comprehensively revised the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY) which have become effective from Rabi 2018-19 season. Provision of 12% interest rate per annum to be paid by the Insurance Company to farmers for delay in settlement claims beyond 10 days of prescribed cut-off date for payment of claims. As the settlement of claims for Rabi 2018-19 season is underway, the admissible penal interest is not yet worked out.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar in Rajya Sabha.

Uber ties up with SUN Mobility for EV push

Uber ties up with SUN Mobility for EV push

electric vehicle charging

Representative Image

Mobility service provider Uber has entered into a partnership with SUN Mobility, aimed at reducing the overall cost burden for Uber driver-partners.
SUN Mobility will offer its unique energy infrastructure platform, which includes swappable smart batteries and quick interchange stations to select original equipment manufacturers (OEMs) for building e-autos.
Fleet owners and Uber’s driver partners will benefit by receiving charged, swappable batteries as a service by SUN Mobility, thereby reducing the overall cost of e-autos to bring them in line with CNG, petrol- and diesel-powered ones.
“We are delighted to partner with SUN Mobility, an industry pioneer to try to usher in a wave of electric vehicles in the mass market category,” said Pradeep Parameswaran, President Uber, India and South Asia. “This is an important step forward in fulfilling our vision for creating a mobility ecosystem that is sustainable, provides cleaner air and helps build smarter cities across the region,” he added.
Commenting on the prospects of the partnership, Chetan Maini, Co-Founder and Vice-Chairman of SUN Mobility said, “Our mission is to give users a cost-effective and convenient energy infrastructure solution to accelerate the adoption of EVs (electric vehicles).’’
In line with the government’s vision to phase out internal combustion engine three-wheelers by 2023 and two-wheelers by 2025, the partnership will be piloted in select cities over the coming months. This could help bridge the demand-supply gap and build a more sustainable future for transport in India and beyond, an Uber newsroom release said.

Tata Motors delivers 40 electric buses to J&K

Tata Motors delivers 40 electric buses to J&K

40 Tata electric buses for J&K

Tata Motors has installed charging stations for fast charging of buses.

Tata Motors said it has supplied 40 9m 900mm Floor Height Non AC buses to the Jammu & Kashmir State Road Transport Corporation. Governor Satya Pal Malik flagged off the buses in the presence of Arvind Ganpat Sawant, Union Minister for Heavy Industries & Public Enterprises and officials from Jammu & Kashmir State Road Transport Corporation (JKSRTC) and Tata Motors at an event held in the city. Some of these buses are plying on the difficult terrains of the Jammu to Katra (Vaishno Devi) route and these electric buses will also ply in the valleys of Srinagar.

Manufactured at Tata Motors Dharwad plant, the Ultra Electric buses will have a traveling range of up to 150 kilometers on a single charge. The indigenously developed e-buses offer superior design and best-in-class features. The Li-ion batteries have been placed on the rooftop to prevent breakdown due to waterlogging. The batteries are liquid cooled to maintain the temperature within an optimum range and ensure longer life along with better performance in tropical conditions.

Speaking on the occasion, Rohit Srivastava, Vice President and Product Line Head – Passenger Commercial Vehicles, Tata Motors, said, “With growing environmental concerns, electric bus will be extremely vital for mass transit because it is not only energy efficient but also reduces overall cost per kms. Tata Motors has always been at the forefront of the E-mobility evolution and this order from JKSRTC is a testament of our excellent range of buses built for STUs in India. Our in-depth understanding of sustainable public transport for different markets and customers has helped us differentiate from our competitors. The electric buses will play an integral role in reduction of pollution load in the congested areas of our metropolis. We are determined to develop alternate fuel technologies and create more energy efficient vehicles thereby supporting the government’s efforts towards promoting electric vehicles in the country.”

Dr. A.K. Jindal, Head Engineering (Electric & Defence), CVBU, Tata Motors said, “Tata Motors has been engaging in advanced engineering and development of electric traction system for Hybrid as well as Pure Electric vehicles for over a decade. The Ultra Electric Bus is a new modular platform, which has been developed in a very short lead-time of less than a year, leveraging the knowledge and experience we have gained and demonstrating our commitment to the Government of India’s National Electric Mobility Mission Plan for Public Transport. The architecture of the platform has been conceived and developed by in-house engineering team of Tata Motors, meeting the requirement of various tenders floated by different state transport undertakings. The exterior has been designed with new brand identity that includes stylized Ultra headlamps and streamlined looks. The vehicle architecture ensures very low energy consumption and low TCO (total cost of operation) apart from being a Zero Emission environment friendly bus.”

The new-age Ultra Electric buses, powered by an Integrated Electric Motor Generator are built on existing proven platforms of Starbus and Ultra. With a max power of 245KW and continuous power of 145KW, the buses have a seating capacity of 31 + 1D seats. The buses will help in zero tailpipe emissions, 50% lower fuel costs, 20% better energy consumption and lower maintenance downtime as compared to diesel buses. As an industry first, there will be air suspension for both front and rear axles to make travel more comfortable for the commuters. Integrated electric motor generator with a peak power of 333HP can deliver 197HP continuously ensuring effortless driving in congested roads and frequent start stops needing no shifting of gears.

Commenting on the occasion, Bilal Ahmed Bhatt, Managing director, JKSRTC said, “The need for a cleaner, smarter and safer mode of transportation is a prerequisite for Jammu and Kashmir, due to the alarming rise of air pollution in the city. Tata Motors has pioneered technological innovations in the bus segment with an in-depth understanding of different market conditions, making it a perfect fit for us. Tata Motors will be delivering 40 e-buses, which will soon ply on the roads of Jammu and Kashmir. We look forward to continue this association.”

The critical electrical traction components have been sourced from internationally known best-in-class suppliers in USA, Germany and China offering proven products. The buses have been tested and validated by Tata Motors across states including Himachal Pradesh, Chandigarh, Assam and Maharashtra to establish performance in diverse terrains. The company has tenders to supply 255 electric buses to six public transport undertakings including WBTC (West Bengal), LCTSL (Lucknow), AICTSL (Indore), ASTC (Guwahati), JKSRTC (Jammu) and JCTSL (Jaipur). In addition to this, the company is also working on developing its electric mini-bus segment in the near future.

India has schemes to push organic farming

India has schemes to push organic farming

Realizing the potential and benefits of organic farming and to improve the economic condition of farmers in the country, Government of India is promoting organic farming through the dedicated schemes of Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) under National Mission for Sustainable Agriculture (NMSA) since 2015-16. Under PKVY, flexibility is given to states to adopt any model of Organic Farming including ZBNF depending on farmer’s choice that is free from chemicals, pesticides residues and adopts eco-friendly low cost technologies.

Under PKVY, assistance of Rs. 50,000 per hectare/ 3 years is allowed out of which Rs. 31,000 (61%) is provided to farmer directly through DBT for input (biofertilisers, biopesticides, vermicompost, botanical extracts etc) production/ procurement, packing, marketing etc.

Under MOVCDNER , assistance is provided to the farmers in a value chain mode starting from formation of Farmers Producer Organisations (FPOs), on/off farm input production, supply of seeds/ planting materials, post harvest infrastructure including collection, sorting, grading facilities, establishment of integrated processing unit, refrigerated transportation, pre-cooling/ cold stores chamber, branding, labelling and packaging, etc .

These schemes are implemented through State Governments at district and village level depending on the interest of the farmers. PKVY scheme is being implemented in 29 States & UTs and MOVCDNER scheme is implemented in the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura since 2015-16.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar in Lok Sabha today.

River Water disputes Bill gets cabinet nod

River Water disputes Bill gets cabinet nod

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Inter-State River Water disputes(Amendment) Bill, 2019 for adjudication of disputes relating to waters of inter-State rivers and river valley thereof, says a Press Information Bureau release.

This will further streamline the adjudication of inter-State river water disputes. The Bill seeks to amend the Inter State River Water Disputes Act, 1956 with a view to streamline the adjudication of inter-state river water disputes and make the present institutional architecture robust.

Constitution of a single tribunal with different benches along with fixation of strict timelines for adjudication will result expeditious resolution of disputes relating to inter-state rivers. The amendments in the Bill will speed up the adjudication of water disputes referred to it.

When any request under the Act is received from any State Government in respect of any water dispute on the inter-State rivers and the Central government is of the opinion that the water dispute cannot be settled by negotiations, the Central Government constitutes a Water Disputes Tribunal for the adjudication of the water dispute.

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