The article "UBS turns to artificial intelligence to advise clients" (December 9) has many lessons for Indian banks, particularly the state-owned ones. Mining data to gain insight on customers is also part of customer relationship management (CRM). Today, CRM is being practised vigorously in the hospitality sector. The point of data collection starts at the time of customer acquisition. The data so collected should be intensively and extensively used to build a useful and profitable relationship. In fact, CRM can spew pleasant surprises to the customer. State-owned banks in India can tap these initiatives not only to recover lost ground but also to steer clear of the rapid fall in market share. Fortunately, their private sector counterparts are yet to tap this concept and, therefore, state-owned banks will have the first-mover advantage.
As it is, most banks, including the state-owned ones, have a detailed application format for opening accounts. Such data has never been used to know the income and expenditure patterns of the customer. For example, in case a customer lives in a rented accommodation, he/she might need a housing loan.
K V Rao Bengaluru
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