Vymo Spotlight - April
We’ve curated the best stories from our insurance and banking newsletters this month.
In this issue, we:
And more!
We hope you find it interesting.
?? AI in Banking — From A to Z
AI’s impact on business operations across industries cannot be ignored.?
But, how is it affecting the banking industry specifically?
We spoke to Sanjay Ghosh , Deputy General Manager at State Bank of India, to find answers!
With over fourteen years of experience, Sanjay is the perfect person to shed light on what AI is capable of in the banking space!
Q: How do you see the impact of AI in the banking industry? To what extent have you observed these effects across various functions?
For this, I'd like to share how AI has helped our bank’s home loan business. Our home loan business has recently surpassed a volume of seven trillion, serving approximately fifty lakh customers. Managing this large volume requires extensive digitization and integration of AI processes.
We've enhanced our underwriting processes significantly through technology interventions, resulting in a delinquency level of less than 0.5%!
Q: Could you walk us through some end-to-end home loan process components and how technology, particularly AI, has been integrated into these processes?
In the home loan process, two critical elements require thorough examination:
Ensuring diligence while maintaining efficiency is paramount to avoid any business losses due to delays.
To address potential fraud in income-proof documentation, we utilize advanced AI technologies. It helps us identify any irregularities or discrepancies, streamlining the review process and flagging areas requiring attention.
Q: How has AI impacted the sales and marketing process in banking, specifically regarding home loans?
Home loan sales require a focused approach; we can't cast a wide net and hope for results. Instead, we need to target specific customers who are likely to be interested in home loans. We employ various methods to identify these potential customers, some of whom are:
The introduction of account aggregators has further broadened our scope by allowing us access to account statements from various banks.?
Q: In terms of reaching out through initial campaigns and managing the sales journey, do you see the scope for digitization and AI to enhance efficiency?
We utilize Quick Data Entry (QDE) for home loans, allowing us to help customers receive in-principle approval within ten minutes.?
We use this short time frame to conduct crucial searches, due diligence checks, KYC verification, and even PAN verification using technology. This streamlined approach enables us to complete all necessary checks efficiently.
And, while many lenders primarily rely on credit scores to assess borrowers, we take additional steps and use AI to analyze the credit behavior of prospective borrowers.
Q: What AI-driven strategies are adopted by SBI across its operations??
AI extends beyond sales and marketing.?
For home loan customers, it fosters long-term relationships and enables upselling and cross-selling. AI also aids in risk management and helps us optimize pricing.?
Q: What are your views on regulatory guidelines while implementing AI?
Regulatory compliance is crucial, especially in handling customer data. Maintaining data privacy and obtaining customer consent for data usage are paramount. With evolving data regulations in India and abroad (like GDPR), strict adherence is necessary to avoid penalties and protect reputation.
Q: What is your advice to organizations embarking on digital transformation journeys?
Implement AI and digitization holistically, ensuring a seamless experience for customers across all stages. While phased approaches are possible, prioritize customer satisfaction by integrating processes effectively. Fintech solutions offer tailored options, but ensure they align with your organization's requirements and comply with regulatory standards to maintain trust and integrity.
Q: Cloud versus On-Premise solutions - What factors come into play?
When considering cloud versus on-premise solutions, it's crucial to evaluate the specific needs and constraints of your organization, especially in the context of regulatory compliance and data security.?
It is also essential to choose reputable providers that adhere to strict security standards and compliance regulations. Additionally, implementing robust data encryption and access controls can further enhance security measures.
Q: What trends will define the next five years, according to you?
From a home loan perspective, AI offers transformative possibilities. For instance, FinTech Solutions can scan local newspaper ads for title deed litigations, alerting us to potential issues.?
We also leverage fraud repositories to vet customers, including builders who might attempt fraud under different company names. Innovations like geotagging property inspections enhance due diligence, uncovering discrepancies and ensuring integrity.?
Q: Can AI be used to assess sentiment and tailor interactions further?
Banking revolves around relationships, and personal events are integral to fostering customer loyalty. While some branches implement these initiatives manually, leveraging technology to enhance such interactions is promising. Maintaining long-term relationships with customers is crucial, and AI can play a significant role in ensuring personalized and thoughtful engagement.
Q: What tips do you have for evaluating vendors when considering digitization or transformation projects?
As a business unit, we prioritize vendors who can meet our specific expectations and translate them into software solutions. However, our selection process involves various departments and often follows formal tendering procedures for high-value transactions. For startups and smaller firms, we may consider nominations if their solutions align with our needs and pass the required qualifications.
Q: Is there a possibility for banks to create fintech hubs or centers of excellence to foster innovation?
Establishing FinTech hubs or centers of excellence where they collaborate and innovate together in a sandbox environment is a viable option.?
By leveraging the specialized expertise of different fintechs and fostering collaboration, banks can enhance their innovation capabilities and develop more robust solutions.
?? Celebrating Our Engineers
Where would the world be without engineers? Perhaps still sitting in a cave, scratching our heads over whether the wheel ought to be round or square! In March, we celebrated Engineering Month, and our brilliant engineers shared their experiences of building innovative products, facing challenges head-on, mentoring young minds, and much more.
Watch our videos:
????The Tech Woman
The latest edition of McKinsey’s Women in The Workplace report says that although women's ambitions within the industry are growing, their representation has only modestly increased and even tends to diminish at leadership levels. How can we encourage, guide, and build the next generation of women tech leaders? Yamini Bhat , our CEO, shared her thoughts in an article for NDTV Profit:
????Educate the girl child. Introduce them to STEM (Science, Technology, Engineering, and Mathematics) at a young age to help them grow into bright, empowered adults.
??Mentor young women in the workplace. As leaders, it’s our responsibility to offer mentorship and coaching programs, sponsorship opportunities, and create a supportive work environment that fosters growth.
??Identify and nurture leaders. Recognize and guide women who have the potential to assume leadership roles. Establish frameworks and coach them to lead and advance their teams.
?? We invite you to join Vymo Nudge 2024!
If you’d like to meet some of the finest minds in Banking & Financial Services and be part of a super-exclusive summit where you can brainstorm, network, and learn from the best in the industry, this is THE place to be.?
Click here to learn more and save your spot!
??We’d love to hear your perspective about this newsletter and overall banking and insurance sales trends.
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