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ROLE OF ARTIFICIAL INTELLIGENCE IN PROVIDING CUSTOMER SERVICES WITH
SPECIAL REFERENCE TO PNB AND ICICI BANK
Article · August 2022
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JOURNAL OF EDUCATION: RABINDRA BHARATI UNIVERSITY
ISSN : 0972-7175
ROLE OF ARTIFICIAL INTELLIGENCE IN PROVIDING CUSTOMER
SERVICES WITH SPECIAL REFERENCE TO PNB AND ICICI BANK
Mr. Manmeet Singh Assistant Professor, University School of Business Management
& Commerce, DeshBhagat University, MandiGobindgarh (Amloh), Punjab.
Dr. Manpreet Kaur Assistant Professor, University School of Business Management
& Commerce, DeshBhagat University, MandiGobindgarh (Amloh), Punjab.
Abstract
Digital disturbance is reclassifying businesses and changing the way businesses work. Each industry
is surveying alternatives and receiving ways to make esteem within the technology- driven world.
The keeping money division is seeing groundbreaking changes: first being the rise in customer-
centricity.AI has been around for a long time. AI was to begin with conceptualized in 1955 as a
department of Computer Science and centered on the science of making “intelligent machines”
machines that might mirror the cognitive capacities of the human intellect, such as learning and
problem-solving. AI is anticipated to have a troublesome impact on most industry divisions, many-
fold compared to what the web did over the final couple of decades. Organizations and governments
around the world are redirecting billions of dollars to support inquire about and pilot programs of
applications of AI in fathoming real-world issues that current innovation isn't competent of tending
to. The appropriation of AI in managing an account has developed a part than other segments. Usually
happened since keeping money sector still has parcel of human mediation within the operations.
Indian banking sector is investigating the ways to improve client administrations with the assistance
of Manufactured Insights. This paper is approximately how Counterfeit Insights (AI) is utilized by
Indian banks with reference to PNB and ICICI Bank to ad lib client administrations in future.
Keywords: Artificial Intelligence, Customer Services, Digitization.
Introduction:
Innovation is the foundation of India's keeping money division. Indian banks may have set out on
their mechanical travel as it were within the mid-to late 1990s, they have more than made up for this
generally late begin. The keeping money division has sent the most recent innovations from center
managing an account and installment frameworks to chance administration and, more as of late,
computerized procedures. Artificial Intelligence enables banks to manage record-level high-speed
data to receive valuable insights. Moreover, features such as digital payments, AI bots, and biometric
fraud detection systems further lead to high-quality services for a broader customer base. Artificial
Intelligence comprises a broad set of technologies, including, but are not limited to, Machine
Learning, Natural Language Processing, Expert Systems, Vision, Speech, Planning, Robotics, etc.
The adoption of AI in different enterprises has increased due to the COVID-19 pandemic. Since the
pandemic hit the world, the potential value of AI has grown significantly. The focus of AI adoption
is restricted to improving the efficiency of operations or the effectiveness of operations. However, AI
is becoming increasingly important as organizations automate their day-to-day operations and
understand the COVID-19 affected datasets. It can be leveraged to improve the stakeholder
experience as well.
The following are 5 applications of Artificial Intelligence in banking:
Customer service/engagement (Chatbot)
Chatbots convey a really tall ROI in taken a toll savings, making them one of the foremost commonly
utilized applications of AI over businesses. Chatbots can successfully handle most commonly gotten
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to errands, such as adjust request, getting to smaller than expected articulations, finance exchanges,
etc. This makes a difference decrease the stack from other channels such as contact centres, web
keeping money, etc.
Robo Advice
Computerized exhortation is one of the foremost disputable themes within the monetary
administrations space. A robo-advisor endeavors to get it a customer’s money related wellbeing by
analyzing information shared by them, as well as their money related history. Based on this
examination and objectives set by the client, the robo-advisor will be able to donate fitting speculation
suggestions in a specific item lesson, indeed as particular as a particular item or value.
General Purpose / Predictive Analytics
One of AI’s most common use cases includes general-purpose semantic and natural language
applications and broadly applied predictive analytics. AI can detect specific patterns and correlations
in the data, which legacy technology could not previously detect. These patterns could indicate
untapped sales opportunities, cross-sell opportunities, or even metrics around operational data,
leading to a direct revenue impact.
Cyber security
AI can significantly improve the effectiveness of cyber security systems by leveraging data from
previous threats and learning the patterns and indicators that might seem unrelated to predict and
prevent attacks. In addition to preventing external threats, AI can also monitor internal threats or
breaches and suggest corrective actions, resulting in the prevention of data theft or abuse.
Credit Scoring / Direct Lending
AI is instrumental in helping alternate lenders determine the creditworthiness of clients by analyzing
data from a wide range of traditional and non-traditional data sources. This helps lenders develop
innovative lending systems backed by a robust credit scoring model, even for those individuals or
entities with limited credit history.
Review of Literature
In this section, discuss the past research on the Artificial Intelligence in banking sector.
In the Article : How HDFC Bank is giving shape to its digital vision Mint (2017) - It envisions to be
a completely customer-centric organization, for which it has taken initiatives towards digitization.
The bank developed a humanoid IRA (Intelligent Robotic Assistant) which guides people at a branch
to find the relevant counter. The bank is testing if customers expect more than this basic interaction
like assistance for transactions and better interaction. EVA (Electronic Virtual Assistant) is created
to answer common queries of bank website users.The bank engaged with at least 25 fintech companies
for AI and marketing to risk analytics and payments as it intends to move from a multichannel to an
omnichannel experience. It also experimented with holographic conversations which it discontinued
due to poor customer acceptance. Smartwatch banking could not scale up because the watch itself did
not do well. Bank is bullish on the smartwatch as a potential banking interface as it will communicate
on its own and multiple things can be connected to watch even if the smartphone is at home as it
doesn't have to be paired with it. A report from Accenture Plc estimates competition from digital
players could erode as much as one-third of traditional retail bank revenues by 2020, hence it puts
pressing needs on banks to outperform the competitors.
In this study Simran Jewandah (2018) reviewed the application of Artificial intelligence in banking
sector such as voice assisted banking, personalize financial services, smart wallets, under writing, and
assist in taking decisions regarding lending, digitization and providing support to customer. With the
assistance of Artificial intelligence such as chat bots and robotic software, many top banks in India
i.e. SBI, Axis Bank, ICICI and HDFC entered in to the digital era. Many problems in banking sector
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such as reduction in cost, increase the revenue, detection of frauds, customers retention have solved
with the help of Artificial Intelligence. AI plays a crucial role in the development of banking industry.
Suresh and Rani (2020) investigated the assistance of AI in banking sector regarding the basic
modernization in banks which helps the banking sector along with their customers.This techniques
highlighted the preferences of customer which provide the assistance to understand their expectations
from the different banks. This research demonstrated the new trends of this technology such as anti
money laundering pattern, management decision making concept, customer support service, voice
assisted banking. The Authors conducted the survey on 100 respondents and found that there was
insignificant relationship between the reducing frauds and educational qualification.
Objectives of the Study
To study the role of AI in Customer Services.
To understand challenges faced by banks while adoption of AI.
To get it how AI made a difference banks in improvement of client administrations of ICICI and
PNB as well as client input on the same.
Research Methodology
Research is based on both primary as well as secondary data. Primary data is collected from clients
of best two commercial banks i.e. ICICI bank and PNB comprising of questions related to
advancement in client administrations through AI, challenges confronted and customers.
Total 50 clients of each bank were studied to gather information on mindfulness, utilization and
fulfillment level of AI empowers services. Secondary data was also collected from various sources
like research journals, websites and articles to ensure detailed understanding of the subject
authenticity of information.
Data Analysis & Interpretation
1. Classification on the basis of Gender, Age & Occupation
Table No. 01: Analysis
No. of
Base Bank Classification Percentage
respondents
Male 26 52
PNB Female 24 48
Total 50 100
Gender
Male 28 56
ICICI Female 22 44
Total 50 100
20 -30 yrs. 38 76
30 - 40 yrs. 5 10
40 - 50 yrs. 3 6
PNB
50 - 60 yrs. 3 6
Age Group
Above 60 yrs. 1 2
Total 50 100
20 -30 yrs. 29 58
ICICI
30 - 40 yrs. 10 20.00
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40 - 50 yrs. 5 10.00
50 - 60 yrs. 5 10.00
Above 60 yrs. 1 2
Total 50 100
Employees 29 58
Students 15 55.56
PNB
Businessmen 6 35.29
Total 50 100
Occupation
Employees 27 54
Students 17 34
ICICI
Businessmen 6 12
Total 50 100
Source: Primary Data
1. Gender
PNB - Gender ICICI - Gender
Male Female Male Female
48% 44%
52% 56%
2. Age Group
PNB- Age Group ICICI -Age group
20 -30 yrs. 30 - 40 yrs. 20 -30 yrs. 30 - 40 yrs. 40 - 50 yrs.
40 - 50 yrs. 50 - 60 yrs. 50 - 60 yrs. Above 60 yrs.
Above 60 yrs. 10% 2%
6% 2%
6% 10%
10%
20% 58%
76%
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3. Occupation
PNB-Occupation ICICI-Occupation
Employees Students Businessmen Employees Students Businessmen
12%
24%
39%
34% 54%
37%
4. Are the customers aware about the app?
PNB- Awareness- ICICI -Awareness -
Gender Gender
150.00 150.00
100.00 100.00
Female Female
50.00 50.00 Male
Male
0.00 0.00
yes (%) No (%) yes (%) No (%)
PNB -Awareness- ICICI-Awareness-
Occupation Occupation
300.00 200.00
150.00
200.00 Businessmen Businessmen
100.00
100.00 Students Students
50.00
Employees Employees
0.00 0.00
yes (%) No (%) yes (%) No (%)
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5. How often do you use the app? If No, what are there reasons for not using the app??
PNB -Usage - ICICI-Usage-Gender
Gender wise Wise
120 120.00
Always (%) Always (%)
100 100.00
80 80.00
Often (%) Often (%)
60 60.00
40 40.00
Not very Not very Often
20 Often (%) 20.00 (%)
0 0.00
Never (%) Never (%)
Male Female Male Female
6. Did you find the interface user friendly? If no, what are the concerns?
PNB -Interface - ICICI -Interface -
Gender wise Gender Wise
150.00 150.00
100.00 100.00
Female Female
50.00 Male 50.00 Male
0.00 0.00
yes (%) No (%) yes (%) No (%)
7. Specify the purpose for which you use the app?
PNB- Purpose ICICI -Purpose
Bills Payment Bills Payment
14% 12%
Personal Loan Personal
44% 38% Loan
fund Transfer fund Transfer
38% 40%
Buying Buying
Insurance 10% Insurance
4%
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8. Will you prefer transacting with bank employees personally or via application?
PNB- Mode of ICICI-Mode of
Transaction Transaction
48% In Person 44% In Person
52% Via App 56% Via App
Analysis PNB
1. In case of PNB 58.33% of the female respondents are aware about PNB – ONE App as well as
69.23% of male respondents are aware about PNB – ONE App out of which maximum awareness is
among male respondents.
2. Around 43% respondents belonging to service and business are unaware about these app services
of PNB, however 66% of the people are aware of the app services, which indicates more peoples are
awarded about various banking services of PNB .
3. 53% of males and 33% females are always using the app services of PNB through mobile app.
While analyzing the frequency of transactions, it was observed that only 12% male and 2% female
respondents were regularly using the app.
4. 70% of males and 61% of females class found the user interface customer friendly, whereas 29%
of male & 38% of females are found not found user interface customer friendly.
5. In PNB 44% of respondents are using mobile app for bills payments , 38% for fund transfer , 14%
for insurance & 4% for personal loan.
6. 48% of PNB Customers will prefer transacting by using PNB – ONE app & another 52%
transacting with bank employees personally.
Analysis ICICI
1. In case of ICICI 50% of the female respondents are aware about iMobile Pay App as well as
67.86% of male respondents are aware about iMobile Pay App out of which maximum awareness is
among male respondents.
2. Around 50% respondents belonging to business are unaware about these app services of ICICI,
however 50% of the people are aware of the app services. In case of students around 52% are aware
& 47% are unaware about these app.
3. 32% of males and 36% females are always using the app services of ICICI through mobile app.
While analyzing the frequency of transactions, it was observed that only 8% male and 3% female
respondents were regularly using the app.
4. 50% of males and 67% of females class found the user interface customer friendly, whereas 50
% of male & 32% of females are found not found user interface customer friendly.
5. In ICICI 38% of respondents are using mobile app for bills payments , 40% for fund transfer
12% for buying insurance.
6. 44% of ICICI Customers will prefer transacting by using iMobile Pay app & another 56%
transacting with bank employees personally.
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Conclusion
The banking industry is investing heavily in implementing AI. However, this sector faces challenges
related to awareness, acceptance of new technologies, security issues, and data threats. Banks need to
promote these products and have strict policies in place to enable optimal use. Artificial Intelligence
is the future of banking as it brings the power of advanced data analytics to combat fraudulent
transactions and improve compliance. AI algorithm accomplishes anti-money laundering activities in
few seconds, which otherwise take hours and days. AI also enables banks to manage huge volumes
of data at record speed to derive valuable insights from it. Features such as AI bots, digital payment
advisers and biometric fraud detection mechanisms lead to higher quality of services to a wider
customer base. All this translates to increased revenue, reduced costs and boost in profits. Many
banks, however, have struggled to move from experimentation around select use cases to scaling AI
technologies across the organization. Reasons include the lack of a clear strategy for AI, an inflexible
and investment-starved technology core, fragmented data assets, and outmoded operating models that
hamper collaboration between business and technology teams.
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