The graphic designer’s life is surrounded by multiple credit card bills and personal loans. He has taken many financial measures to pay the multiple EMIs. But the cost of living and inflation shattered it. A friend advised him to takeDebt- Consolidation Personal Loan.
His multiple loan bills are clubbed into a single and lower payment of EMI. With a disciplined budget, he paid all his outstanding dues and has become debt-free.
| Credit Card Due 1 | ₹ 1,01,256 |
| Credit Card Due 2 | ₹ 38,632 |
| Personal Loan 1 | ₹ 45,117 |
| Personal Loan 2 | ₹ 66,545 |
| After debt consolidation loan
(Adding all the dues with 10.50% |
₹ 26,412.75 |
AI in the banking sector does the job of debt collection like a bank employee. When a customer has outstanding dues, it reminds them without a bank’s interference. This is the power of AI in today’s society. Are you aware of how AI watches your loan dues? This blog deconstructs how AI collects debt and changes the banking industry.
Introduction
The horizon of the financial sector evolves with the emergence of Artificial Intelligence (AI) technology. With the arrival of AI in our country, banking sectors have embraced this technology to ease all processes. As a result, the debt collection becomes much easier. It redefines the entire banking method and improves debt collection.
Due to this, many banks witnessed massive growth in the last decade.
Artificial Intelligence (AI)
It is an emerging technology that imitates and thinks like humans. Artificial Intelligence is a simulation of human cognitive skills and thinking skills, which are programmed into machines or any applications. AI uses all the resources to answer a question. It recognises the patterns of humans such as shopping, banking, food, and many others. Based on these patterns, it suggests a product or solution.
AI transforms the banking sector completely. Traditional banking requires physical visits for all the processes. But AI processes it even if one is in a comfortable zone. The integration of AI in the banking sector reduces the human labour for debt collection and other financial activities. For example, digital apps like Walnut, ET Money, YNAB, and many others help you to check your bank balance.
AI-Driven Solutions for Debt Collections
Debt collection in the banking sector is a complex process. The bankers inform the borrower about the outstanding dues, and in return, the borrower must comply with the banking rules. Many times, it becomes a tussle between banks and their customers. Sometimes, this entire debt collection process becomes inefficient.
AI-driven solutions eliminate this problem once and for all. It reaches the bank customers with prior reminders. In a traditional banking method, the agents inform the borrowers through official letters and phone calls, which stretch the time. But the AI technology instantly informs the outstanding to both the bankers and borrowers. This improves the efficiency of all the financial matters of a bank.
For example, AI sends emails, SMS, and WhatsApp to customers about loan defaulting.
- Efficiency
All the debts are collected efficiently with the help of AI. Manual labour about debt collection may miss payments. But AI processes the data, which is already uploaded and makes no errors. For example, a private bank’s server automatically sends a message to a customer who missed the EMI payment. Due to this, the debt recovery is high.
- Accuracy
AI perfectly informs a bank about the outstanding dues of a customer. These automated debt collections use data and algorithms for banking. AI also accurately detects bank accounts that are dormant, inactive, and risky accounts. This enables the bank to take preventive measures. For example, SMS notifications about bank transactions are sent to customers.
- User-Friendly Experience
The AI gives suggestions for collecting loan dues from a bank. Likewise, it gives solutions for a borrower to repay the loan. All the languages of AI are simple. One can communicate with the chatbot or virtual assistant. For example, many private banks come with AI assistants on their websites for their customers.
- Automation
The AI technology integrates a customer’s salary account to a loan account. So after a request, the EMI is directly paid to the loan account. This improves the loan repayment process. Indeed, for those who want to make savings from their income, automation is the best choice. For example, you can set ₹ 10,000 as automated savings to your desired bank account.
Conclusion
AI is the future for debt recovery. It eliminates human resources and time consumption. AI can handle multiple tasks at the same time. So it can communicate with the loan defaulters via email or SMS. AI looks promising and reshapes the debt collections to be easier. Therefore, both the bank personnel and customers must update on this technology to have hassle-free banking.
