Future Internet/Online Banking

Introduction:

This document is to highlight the areas of Improvement/Innovation possible in Internet Banking

(IB) with the advent of AI and Open Banking. Customers have already started to operate entirely
online as innovative features and services have surpassed traditional banking services. However,
there is further scope of features that can be incorporated into the Internet Banking (IB) to
make it future ready. Few of them have been illustrated briefly in the document.

AI and Open Banking for Future Ready Internet Banking (IB):

1. Banking Aggregation:
a. With Open Banking API all the accounts of a customer will be aggregated, and he/she
can view all their accounts from multiple institutions in a single interface.
b. From this single interface Customer can have access to funds in any accounts and make
payment instead of logging in to individual platform of respective bank
c. Using Open Banking API banks will be free to use the Internet Banking (IB) of their
choice and integrate to the Core Banking application.
d. Open Banking API will enable creation of innovative-financial products for every
service or group of services thereby customer will get multiple choices for
consideration.
e. Based on the financial data from various sources gathered through Open Banking API
customer IB can offer more personalized and tailored products.
2. Financial Advice Notifications:
a. Personalised Financial advice using the Customer Data. Open Banking API can help to
get access to history of Customer transactions and then the AI models can identify the
pattern of spending to recommend savings, investment options and other financial tips.
b. The recommendation will also provide a hyperlink to navigate to the investment page
and display suitable funds and ability to start the investment immediately.
3. E-Applications:
a. The KYC related processing will be handled in electronic mode through IB itself
reducing physical documents, thereby avoiding the misuse/losing of physical KYC
documents.
b. AI will analyse the creditworthiness and capture the credit risk and scoring and
recommend various Loan offers. Post customers consent the entire documentation and
KYC process will be handled in electronic form with frequent notifications/status
updates in the Internet Banking (IB) application, thereby reducing the timelines and fast
tracking the loan from origination till disbursement.
c. In above case AI will be provided access post customer consent to the digital locker of
the customer to capture all the required KYC documents in electronic form.
4. Chatbots:
a. Chatbots will handle various Customer services like basic queries- balance checks,
transaction history, complaints, and queries.
b. Chatbots will also be able to initiate transactions through Nature Language Processing
like Text, Speech.
5. Fraud Monitoring:
 a. Analysing customer’s transaction pattern and location, AI model can identify, stop the
transactions, and trigger notification alerts or request additional user authorization to
allow the transaction.
b. Based on customer regular geo location if a transaction is initiated from a completely
different geographical location, AI will notify on all channels to customer to confirm the
transaction.
6. Voice Banking:
a. Voice assistant powered by AI can help Customer interact and get information on the
account balance and submit requests and queries and even perform transactions like-
Funds transfer, Utility Bill Payments.
7. Biometric Authentication:
a. Voice commands, facial recognition will be added to the existing fingerprint method for
login authentication and transaction authorization.
8. IB Personalization:
a. Based on customer behaviour pattern AI will personalize the Internet Banking
application to display primarily the features those customer uses frequently and add
other features based on need via a request through Chatbot.
b. Even based on Customer geological location the AI will provide additional helpful
information via notifications and features to Customer, thereby increasing customer
ease and satisfaction of using the Internet Banking (IB) application.
9. Deliverable Handling:
a. Deliverables are one of the key elements for the bank like – Cheque book, Cards, and
Deposit Receipts, these will be handled by AI automatically by initiating a new request
when the remaining Cheques are less than a threshold number, and issuing a new card
when the existing card is expiring.
b. In above case the request will be created by AI and a notification will be sent to
customer in Internet Banking session on login to authorize the request for submission.

10. Regulatory Measures:

a. New Data and Privacy regulations will be required to be followed while the Open
Banking API and AI model start using customer banking data which is highly
confidential.

Note: These recommended enhancements are based on the future of Internet Banking (EB)
application from the perspective of Customer satisfaction.