Kotak Mahindra Bank explores innovative digital strategy through implementation of Artificial Intelligence
Kotak Mahindra Bank, one of India's leading financial institutions, has announced its vision for the future of finance, with a focus on harnessing the power of big data and analytics to create customer-centric solutions. This vision, embodied in the bank's ABCD Charter, aims to make banking more accessible and rewarding for customers.
The launch of the ABCD Charter was marked by the presence of Nandan Nilekani, who led the creation of Aadhaar, at the announcement. Nilekani commended Kotak for leveraging Aadhaar to reimagine bank account opening from days to minutes.
Rapid Growth and Digital Transformation
The bank's digital-first organic growth strategy has been instrumental in its success. Kotak launched its digital banking platform, 811, on March 29, 2017, just over three months after the Reserve Bank of India permitted the use of Aadhaar-based OTP authentication for account opening. Since then, the total customer base of Kotak Mahindra Bank has grown from 8 million to around 12 million.
The adoption of futuristic technology, as outlined in the ABCD Charter, has played a significant role in this growth. Kotak already commands about 8% of India's mobile transaction value, and the number of eKYCs stood at over 3 billion in the same year.
A Seamless Customer Experience
The ABCD Charter envisions the adoption of AI enriched App, Biometric enabled Branch, Context enhanced Customer Experience, and Data empowered Design. The AI enriched App will include a conversation banking interface, 24x7 service, query management, and transaction handling across web, mobile, and app.
The Biometric enabled Branch will leverage biometric authentication in branches as well as at customers' doorstep, not just for paperless account opening, but also for speedy services. Context enhanced Customer Experience will leverage Data Warehouse, Big Data, Robotic Process Automation, Analytics, and API interface to offer superior experiences and shrink service TATs from days to minutes.
The Future of Finance
Uday Kotak, Executive Vice Chairman & Managing Director of Kotak Mahindra Bank, aims to increase the bank's market share from 30% to 50% over the next five years. This ambitious goal is underpinned by Kotak's belief in the immense opportunity to disproportionately increase its share of the financial services pie.
The Unique Identification Authority of India (UIDAI) is the key institution promoting and supporting the implementation of Aadhaar-based systems in banking and financial services. Working in coordination with the Ministry of Cooperation, NABARD, National Payments Corporation of India (NPCI), and various cooperative banks, the UIDAI is striving to enhance digital financial inclusion across India.
In 2017, Aadhaar-based systems completed 10 billion authentications, which is nearly five times that of card transactions at PoS. This underscores the potential of Aadhaar-based systems in transforming the banking and financial services landscape in India.
As Kotak Mahindra Bank continues to innovate and embrace technology, it is poised to lead the way in the future of finance, delivering seamless and delightful customer experiences in a fast-evolving banking landscape. The 811 assistance via Bot is set to go live soon, further enhancing the bank's digital offerings and solidifying its position as a leader in the digital banking space.
