India's Central Bank Calls for AI in Handling Consumer Grievances
India's central bank has called on regulated financial institutions to use artificial intelligence (AI) to improve internal controls, especially in handling consumer grievances over mis-selling and aggressive sales tactics, according to Reuters. Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized the increasing importance of AI in enhancing customer service in his address on 17th March.
Growing Number of Consumer Grievances
Indian commercial banks had more than 10 million complaints during the 2023-2024 financial year, and this is projected to rise with the growing number of clients and the broader scope of available financial products. Malhotra emphasized that complaints may keep rising before these concerns are addressed if proper measures are not taken.
AI Tools for Monitoring and Prevention
Malhotra said that banks can use AI to deal with vast sets of data and recognize emerging patterns in customer concerns. AI solutions can provide advance warning alerts through pattern monitoring, like frequent failure of ATMs or incorrect charges, allowing institutions to act before issues spiral out of control. Using data and analytics can help prevent customer dissatisfaction and improve the banking experience.
In a multi-lingual country like India, Malhotra demonstrated how AI-driven technologies like voice recognition software and chatbots can be immensely useful in breaking language barriers. With multi-lingual support, these AI technologies can enable more effective and inclusive communication with customers of diverse linguistic backgrounds.
Also read: India's Apollo Hospitals to Expand Use of AI to Ease Workload for Medical Staff
Investing in Human Capital for Improved Service
Though technology is important, Malhotra also stressed investing in human capital. Enhancing customer service teams and grievance redressal mechanisms is fundamental to developing a superior customer experience.
