“We want each customer to feel like they are the only one we’re serving. Personalisation is the key to achieving this vision. Axis Bank has invested heavily in technology, with 15 AI pilots currently running,” stated Amitabh Chaudhry, CEO, Axis Bank.
These are expensive experiments, but they’re necessary. As we learn to use AI more effectively, we expect operational costs to decrease, he noted.
Axis Bank’s ‘Aadi’ allows any of our team members to ask questions about products or services in real time and get immediate, informed responses. This capability extends to gamification, where we nudge customers and reward them with badges to encourage engagement, Chaudhry elaborated.
Emerging Consumer Behaviour
When people step into the digital world, they expect everything to happen instantly and securely, there’s a strong notion of gaining an immediate benefit from every transaction. Consumers today are savvier, carefully analysing the benefits before they engage, while platform providers have sophisticated models in place to meet these expectations.Amitabh Chaudhry, CEO, Axis Bank
This shift in behavior isn’t just limited to the younger population. “We’re witnessing senior citizens embracing these platforms as well. They, too, expect quick, secure services, and they’re wary of the potential risks, like fraud in digital finance, Chaudhry added.Axis Bank’s Approach to the Evolving Consumer Behaviour
Chaudhry outlines three crucial paths for the bank in response to these changes. “First, we need to attract customers to our platforms. This requires us to innovate and clearly communicate to the market that we’re ahead of the curve. Banking decisions are not made impulsively, they are well-thought-out, and we must position ourselves as a forward-thinking bank.”
Secondly, “We must engage with our customers by simplifying their journey. It’s about standing out in their minds and ensuring that they spend the least amount of time to get the message, service, or product they need.”
Finally, “This is where AI-driven personalisation comes into play. By using personal nudges and cross-selling opportunities, we aim to increase transactions and deposits while building deeper relationships with our customers.”
Phygital Banking Experience
Despite the digital push, Chaudhry asserted that physical interactions remain vital.
We are a phygital nation, while almost all of our services are enabled digitally, we can’t remove the need for face-to-face interaction. Axis Bank offers features where you can manage all your accounts, but you can also visit a branch, where our team will continue your journey seamlessly from where you left off, whether digitally or physically.said the Axis Bank CEO.
Further, every deposit we open prompts the customer to choose a branch. Our goal is to boost productivity and reduce operating costs through digital means, but physical branches will always play a crucial role, Chaudhry concluded.
Amitabh Chaudhry was speaking at the Global FinTech Fest 2024 held in Mumbai.
