What’s your bank's instant offer strategy in 2024?

December 4, 2023

Instant offers have become an important differentiation for banks and financial services providers in the fast-paced world of banking, where client expectations are changing quickly. Advances in artificial intelligence (AI) and the incorporation of business rule engines into banking operations have sparked a trend towards 'right here, right now' offers. This blog examines how no-code artificial intelligence (AI)-driven business rule engines are enabling Indian financial institutions to provide consumers with instant offers in response to their need for quick and easy financial products.

Like their worldwide counterparts, banking consumers in India today are used to instant gratification. The expectation is always the same, whether it be for transactions with the bank, food delivery, or online shopping: immediate results. This expectation is translated into a desire for instant offers on credit cards, loans, and other financial products in the banking industry. The 'right here, right now' services are crucial for client acquisition and retention because waiting days for approval or experiencing delays in processing can cause customers to look for alternatives.

Despite all the benefits, a lot of financial institutions still struggle to provide instant offers to the customers. Some of the reasons include

1. The business processes related to sanctioning loans, evaluating eligibility, and managing risks, are complex processes and often managing risk in disbursals takes a toll on the speed and scale of offers.

2. Financial institutions rely on a wide range of information, documents, and policies to make decisions, however, managing and using all these policies decision-making can be challenging, as it’s often present in physical forms or is spread across disparate business systems, spreadsheets, and data silos. This lack of centralized management of policies/rules inhibits the banks’ ability to provide instant offers.

3. Banks are subject to financial and compliance regulations. Ensuring compliance and lower risk while providing instant offers can be daunting for banking systems with limited compliance teams.

4. The initial stage of customer application and onboarding including KYC, bureau checks, etc. can be time-consuming.

5. Lack of personalized offers based on customer data and journey.  

How No-Code business rule engine like DECIDE help?

1. AI-powered business rule engine automate the process of application processing, eligibility, bureau checks, etc. in a seamless manner enabling banks to provide instant offers to customers.

2. They help provide personalized recommendations based on existing data, including customer profiles, touchpoints, customer propensity, and affinity to identify the target segment. It not only goes beyond suggesting the “next-best offers” but also proactively presents the most relevant financial product to the customer based on their needs.

3. It allows them to ingest data from multiple sources, transform the data using financial formulas, lookups, and aggregates, and eventually consume this data within the business rules to make informed decisions.

4. Smart forms auto-populate customers' identity, address, and bank account details for faster application and digital verification including PAN, Aadhaar, KRA/CKYC, Video KYC/IPV, AML checklist, and Digilocker allows onboarding in a flash.

5. Automated credit decisioning tools empower subject matter experts to author, test, and manage business rules to maximize good business and minimize risk.

6. The AI-based platform enables performing complex tasks such as propensity of fraud, chances of bad debt, risk, etc. much more quickly and efficiently. Using AI-driven name & face matching and face liveliness, the rule engine could derive a scorecard for indication of fraud.

7. By incorporating risk assessment models, they ensure that the risk is not compromised for want of speed and scale. The models analyse vast data sets in real-time and enable instant offers.

For Indian banks, being able to provide quick financial solutions is not only a competitive advantage but also a need in the quickly changing financial landscape. Business rule engines driven by artificial intelligence (AI) are revolutionising banking processes and enabling organisations to provide instant and personalised services to their customers. The 'right here, right now' strategy is poised to revolutionise the consumer experience in the Indian banking sector as the business continues to embrace these technological innovations.

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