There is a lot of buzz around Artificial Intelligence, Machine learning, Big Data, Algorithm these days in mainstream media, thanks to popular tech companies like Google, Facebook etc. Speculations are doing the rounds on which professions would cease to exist in future due to this technology shift. The discussion ranges from impact on Education (teacher-less school) to Journalism (robot-generated reports) to English literature (robot generates poem!). How about the banking/lending industry and its associated workforce? Would we get into a situation in future where we just need a basic minimum workforce to operate a bank/financial institution instead of the current large manpower? Or are we already into it?
Sales Executive used to fill up long hard-copy forms for collecting the relevant details of the customer. These used to be eye-balled by Operations officers at back-office who would generate a digital footprint of the data in the Core system via data entry. This model is changing. Sales team is generating the data himself via Mobile based CAS solutions. In many occasions, even the customer himself is finding the FI, sharing his information himself.
These search triggers to Credit Bureaus are already automated as most of them provide API/Web services to call their services real time. The results are available in XML (machine readable format). If we want to automate the decisioning also, its just a matter of putting the CA brain into a rule engine.This may sound simplistic. But possibly this is the biggest block so far in going for a human-interaction-less banking.
Are we already in a position where we can go for a human-interaction-less FI? The algorithms are getting built and computer scientists are raring to go to solve this. But the implementation would depend on the data availability mostly. Will it happen in near future? This has already started happening in some markets. Traditional Financial Institutions may not like to jump into this mode immediately, but alternate banking models are already taking foray into this models. It's possibly a matter of time when you would see the customer acquisition process in banks/Financial institutions being run completely by Algorithms and a few Data Scientists!
This article was first published in Linkedin: https://www.linkedin.com/pulse/do-we-need-human-being-provide-loan-customer-bankfi-chakraborti