India’s central bank-regulated institutions can harness artificial intelligence-driven internal controls to tackle consumer grievances related to mis-selling and aggressive sales tactics, central bank governor Sanjay Malhotra stated on Monday.
Malhotra revealed that 95 commercial banks in India received over 10 million customer complaints during the 2023-2024 financial year.
“With a rapidly expanding customer base and an increasing array of financial products, this number could rise if we don’t take proactive measures,” he cautioned.
AI can help financial institutions process vast amounts of data to identify patterns in complaints, such as ATM malfunctions or incorrect charges, and trigger early warnings to prevent widespread issues, Malhotra explained during a speech.
He further highlighted the potential of AI-powered chatbots and voice recognition technology in overcoming language barriers in India’s linguistically diverse landscape.
In addition to AI adoption, Malhotra urged financial institutions to invest in skilled personnel to enhance customer service and streamline grievance resolution processes.