In the near future, banks will have chatbots that can reactively and proactively address the broader needs of customers, going beyond conventional transaction services.
Banking customers prefer simple and non-suspicious transaction methods, especially when dealing with their hard-earned money. Customers are diverse in nature, mindset, knowledge, requirements, intellectual level, and familiarity with digital operating systems. Each bank caters to three generations of customers with varied needs and tastes simultaneously. The younger generation is naturally tech-savvy and somewhat willing to take risks, unlike the older generation, who are more cautious about risk and suspicious of uninvited service support that often comes from banks’ digital platforms. A bank cannot teach all customers the intricacies of digital systems, nor can it predict how cyber criminals will evolve to deceive unsuspecting users. Even with increased expenditure on safeguarding customer interests, cyber criminals constantly find new ways to breach security. Disseminating digital knowledge and closing loopholes are ongoing challenges for commercial banks. As time progresses and customer preferences change, alongside shifts in the global environment, banks face additional hurdles.
Though ringfencing against multiple risks remains a priority, technology adoption aims more broadly at business expansion, as well as building scale and efficiency. Looking ahead, banks are exploring technology that can address multiple complexities and swiftly facilitate all customer financial transactions. In the future, wealthy clients may expect their banks to manage personal business, organise entertainment bookings, and handle household expenses, anticipating the best service from their bank. Currently, digital platforms manage utility bill payments, insurance renewals, and online payments for travel bookings by customer request. Eventually, it may become normal for customers to want their bank to select the best and most affordable tour packages, book the entire trip digitally, and connect all parties involved. AI, functioning as a “reactive helper to a proactive financial agent for shopping, payments, and investing,” could make these complex processes feasible. AI can analyse the nature of bookings, customer profiles, and package costs before providing the appropriate responses. This innovative development, which introduces a new “revenue engine,” is expected to boost bank income and disrupt many small businesses, according to a report by a US strategy and management consulting firm.
Axis Bank
Safeguarding FD customers from digital fraud
Axis Bank has been continuously investing in a digital-first proposition that focuses on secure and seamless banking experiences, says Sameer Shetty, Group Executive – Digital Business, Transformation and Strategic Programs.
Axis Bank, one of the largest private sector banks in India, launched an industry-first feature – ‘Lock FD’, designed to protect customers’ term deposits from rising digital fraud. This innovative feature, available on the bank’s mobile app ‘open’ and across all its branches, enables customers to prevent premature closure of fixed deposits (FDs) through digital channels, such as mobile and internet banking, offering an additional layer of protection against cyber threats.
The option for premature closure from digital channels will not be available once the deposit is locked. Customers who opt for this feature will need to visit the branch to close their FD prematurely. This in-branch verification with stringent identity checks reduces the risk of unauthorised access. This functionality is especially beneficial for customers who may be less familiar with digital platforms and are more susceptible to digital fraud.
Axis Bank has been continuously investing in a digital-first proposition that focuses on secure and seamless banking experiences, says Sameer Shetty, Group Executive – Digital Business, Transformation and Strategic Programs. The ‘Lock FD’ feature empowers customers to safeguard their term deposits from unauthorised digital access, he points out.
The bank also recently launched an In-App Mobile OTP feature on its mobile app to enhance authentication security and protect customers from rising OTP-related fraud and scams. These initiatives align with the bank’s strategy to improve customers’ digital experience while combating digital fraud, positioning it as a leader in banking security.
Axis Bank offers a broad spectrum of services to customer segments covering large and mid-corporates, SME, agriculture, and retail businesses. It has 5,879 domestic branches, including extension counters, and 14,134 ATMs and cash recyclers spread across the country. The Axis Group includes Axis Mutual Fund, Axis Securities, Axis Finance, Axis Trustee, Axis Capital, A.TReDS, Freecharge, Axis Pension Fund and Axis Bank Foundation.
