ICICI Bank is adopting Aritificial Intelligence (AI) and Machine Learning (ML) in a big way. Over the last year, these technologies have reduced internal costs for the bank and helped significantly drive its deposit and lending growth, the banks management said during an earnings call with analysts. The bank reported a net profit of Rs 4,402 crore in the fourth quarter of FY21, around 260.5% higher compared to the same period in the previous year, according to its financial results. The costs and benefits of AI and ML Several of the leading banks are turning to technology, to target customers with the right product and through data-based underwriting, they can bring their loan delivery time to just a few minutes. ICICI Bank sees AI and ML as an opportunity to acquire good customers at a faster speed, while also helping it keep tabs on how their clients' spending and credit behaviour on a near real-time basis. Banks can have a solid credit delivery process and underwriting abilities for unsecured products that are delivered in a pre-approved and straight-through format, said Anup Bagchi, Executive Director, ICICI Bank. “The AI and ML essentially are used to a) figure out patterns and b) most importantly, get feedback of early warning signals back into the credit underwriting process. We can intervene in the micro-services market in terms of yields and fees. These technologies lead to a lower operating cost, lower acquisition cost, lower cost of collection and lower credit cost," he said. However, not…
