Impact of AI in Consumer Finance – A Study with Special Reference to Chennai City

Abstract

This study looks at how the introduction of innovative technologies, often marketed as "artificial intelligence", in the consumer finance sector can impact the customer service experience. The goal of this report is to explain how financial institutions use chatbot technology and the related challenges faced by their clients. Working with customers to solve problems or answer questions is a core function of financial institutions – and the foundation of relationship banking. Customers look to their financial institutions for help with financial products and services and expect quick and easy answers, regardless of the process or technology used. For decades, banks have used customer data such as income, credit scores and spending habits to promote, cross-sell and upsell their products to increase revenue. But today's technologies allow financial institutions to access more data and increase revenue in new ways. For example, a few years ago banks tracked consumers' credit behaviour through traditional databases and their monthly credit scores. But something has failed – the terabyte trail of behavioural and interest data it leaves behind through digital journeys and payment behaviour across products and services outside of relationships with customers. financial institutions. By using artificial intelligence and machine learning for faster, more granular analysis, financial institutions can proactively address the underlying needs of their customers by extracting compelling insights. from their digital footprint and payment behaviour. Many senior industry executives believe that AI is creating and will continue to generate the greatest business benefits by leveraging data and analytics and making better predictions.