Emerging Need of Artificial Intelligence Applications and their Use cases in the Banking Industry: Case Study of ICICI Bank

Emerging Need of Artificial Intelligence Applications and their Use cases in the Banking Industry: Case Study of ICICI Bank

Neha Garg, Mamta Gupta, Neetu Jain
Copyright: © 2022 |Pages: 22
DOI: 10.4018/978-1-6684-4950-9.ch008
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Abstract

Presently, banks are fronting with many challenges such as deteriorating loan asset quality leading to increasing provisioning requirements, dissatisfied customers, falling profitability, and weakening capital adequacy position. Innovative cutting-edge technologies has made enough space for new, non-traditional players to enter the financial industry, making the banking sector more competitive than ever before. Traditional banks are facing stiff competition from new financial players and foreign banks who are accelerating their business volumes with the help of rising digitisation and AI technology in today's digital era. The focus of the chapter is on understanding how banking is changing in India with the advent of AI applications. The practical use cases of AI in the banking industry shall become inevitable for the entire financial industry in the near future. At last, this chapter analyses various opportunities and threats while adopting AI applications.
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Objectives Of The Study

  • 1.

    To assess the various artificial intelligence applications transforming the banking Industry

  • 2.

    To analyse the AI applications used by ICICI Bank along with their opportunities and threats

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Literature Review

With Covid19 disrupting jobs and income sources of millions of people, defaults from the retail sector and commercial sector are likely to soar. People are finding it difficult to repay existing loans and make new expenditure (Sengupta, April, 2020). Now with the Banking industry priority shifting from comfort and growth to stability and survival, creating a holistic customer experience and understanding the financial needs of consumers is even more critical. The business model of the banks has been challenged by three developments: low interest rates affecting the profitability of banks, increased regulatory requirements and compliance costs, and massive application of latest technologies (Elena Carletti, 2020).

Since banks play a very important role in the economic development of the entire country, the use of the latest technology to successfully implement strategies will not only create added value for one's own business, but also contribute to the economy and growth of the country. Banks must keep pace with the ever-increasing expectations of today's rapidly changing environment. Banking products have far surpassed traditional banking in India (Kurode, Jan 2018).

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