ChatGPT Will Enhance Customer Service & Credit Assessment Accuracy in Banks
“ChatGPT will be a lasting friend, philosopher & guide.”
OpenAI, an Artificial Intelligence (AI) company in which Microsoft has invested $10 billion, is a leading AI research organisation founded in 2015 by Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, and Wojciech Zaremba. The company innovated the ChatGPT (Generative Pretrained Transformer) platform, which operates on text data designed explicitly for text-based communication. It is a technological gift to banks to enhance customer service and expedite efficient credit appraisals.
ChatGPT remembers what the user said in the earlier conversations and allows follow-up corrections. It declines inappropriate requests. It is evolving as a role player in customer service, credit appraisal and credit rating of Individuals and Corporates for banks. With no subjectivity, the impassionate SWOT analysis done on projects by Chat GPT shall soon be a huge game changer in credit assessment across banks in the financial world.
ChatGPT works on inbuilt data and generates human-like responses to various questions. The model is helpful for chatbots, customer service applications, and conversational AI applications. ChatGPT generates contextually relevant answers based on the conversation history, which significantly improves the quality of conversational AI and makes it much easier for businesses’ financial and economic decision-making.
In simpler terms, ChatGPT is a chatbot where users can ask queries and requests for writing essays, articles, and analytical notes. Users can get both technical as well as jargon-free replies. It can write stories, circulars, memorandums, legal petitions, and cover letters. It can summarise books and summarise long notes online within seconds. Credit analysts in Banks expect ChatGPT to take over their proposal writing and data collection for incorporating critical information on the borrower from the public domain.
ChatGPT uses Reinforcement Learning from Human Feedback (RLHF) technology but is tweaked to appear more friendly to humans. Based on GPT-3.5, a language model used for deep learning to produce human-like text, its users may get different replies if they ask the same question.
On the negative side, parents worry that their children will only be able to get away with their homework without proper understanding and knowledge of their subjects. Senior school teachers and university professors are worried about their relevance in the days ahead. Credit analysts may also face existential competition as ChatGPT deploys several reinforcement learning algorithms for performance, which the AI community has widely adopted. These algorithms have applications like game-playing, robotics, and autonomous systems. ChatGPT learns from human interactions. The model continually improves its responses based on the feedback it receives.
A few essential characteristics of ChatGPT that are useful for the banking industry are :
• Impersonal Customer Service: ChatGPT has impacted finance primarily through its ability to handle complex financial queries and provide accurate, reliable responses. Banks can assist clients quickly and efficiently using the ChatGPT platform.
• Customer Delight: ChatGPT learns from human conversations and responds more naturally. It’s much better at delivering personalised experiences than traditional chatbots, which use pre-programmed rules or scripts. Banks could give customers tailored responses that increase satisfaction and customer delight.
• Accounting Transactions: ChatGPT can assist customers in checking account balances, making payments, and tracking investments through simple conversations. ChatGPT has the potential to revolutionise the customer service industry, and its future applications are nearly limitless.
• Customers Feedback: ChatGPT can be used to understand how customers feel about a product or service. Banks can use this information to improve their offerings and meet customers’ needs. It can suggest the best insurance plan, home loan or bank offering competitive interest rates to MSME.
• Marketing & Lead Generation: ChatGPT can generate leads by engaging potential customers and learning about their needs. Banks can use this information to tailor marketing campaigns to address customers’ interests and preferences.
• MIS Reports & Sales Support: ChatGPT provides personalised recommendations based on customers’ needs. Banks could close more deals if customers get suitable options.
ChatGPT can generate peer-level performance information helping bankers develop rating rationale before lending. As a powerful tool for the Banking industry, it helps streamline processes and enhance customer service. ChatGPT makes more informed credit decisions to avoid Non-Performing Assets.
While Google is still a dominant player in the industry, ChatGPT’s advanced technology and intuitive design have made it a front-running knowledge provider. ChatGPT supports customer services like Vodafone, Airtel, Paytm, and Swiggy, and personal assistants similar to Siri and Alexa with scheduling, reminders, and daily activities. It is a boon for students to help them solve complex questions in simple words.
ChatGPT is like walking with the best-informed, intelligent friend who responds at lightning speed and never gets angry or tired of repeated questions & replies. It recently clocked 100 million users in just two months.
Rightly said, “Technology is best when it brings people together.”
Hargovind Sachdev
About the author:
Mr Hargovind Sachdev superannuated as a General
Manager of the State Bank of India. Has over 39 years of
experience across State Bank of Travancore, State Bank of
India, State Bank of Patiala, UCO Bank and United Bank of
India.
Headed the Central European Credit Desk of the State
Bank of India in Frankfurt, Germany, from 2006 to 2011,
covering 15 countries and was the CVO of UCO Bank &
United Bank of India till 2016.
Has undergone International Banking Training from the
Asian Institute of Management, Manila, The Phillippines, in
2003 and Multi-currency lending technique training at the
Euromoney Institute, London, in 2009. Has specialisation
in Foreign Exchange, Corporate Credit, Vigilance &
Climate Risk Mitigation in Banks.
He is an accomplished speaker, having conducted
multiple seminars for institutions like ONGC, National
Housing Bank, Hindustan Aeronautics Limited, Bank
of Baroda, Canara Bank, Union Bank of India,
Bandhan Bank, Gita Rattan Management School &
NIIT University.
Mr Hargovind Sachdev is an Independent Director at
HPL Electric & Power Limited & ISF Limited. He is also
a Director at S.K.Singhi & Co (Consultants) Private
Limited, Advisor to SK Singhi & Partners and Director
of Climate Risk & Finance Council, USA.
