In an exclusive conversation with CXO Media and APAC Media, Binit Jha, Chief Data Officer, IDBI Bank explains how AI is helping IDBI Bank to streamline data governance and different operational processes
As the Chief Data Officer of IDBI Bank, how do you envision leveraging emerging technologies like AI and machine learning to enhance the bank’s data-driven decision-making and customer experience?
Use of Artificial intelligence ( AI) in the banking industry is not new. Globally banks have pioneered in developing major breakthroughs in its use. Some key areas of AI use in banking are to detect fraud, resolve customer inquiries, monitor customer behavior, and recommend personalized services. We can also use Artificial intelligence to fill the gap in process automation, make better decisions and manage customer requests with less effort
One of the most visible applications of AI in Indian banks is the use of chatbots and virtual assistants to enhance customer service. This technology allows banks to provide round-the-clock assistance, resolve queries faster, and reduce the burden on human agents.
Having said that, IDBI is not far behind in its usage. We are at a stage where we do use some AI based models for business growth and we are in discussions with industry leaders in consulting and platform companies to collaborate and help us detect early fraud activities , automation in decision making, customer experience and Cybersecurity.
Given your extensive experience in data engineering and analytics, what innovative AI or automation tools do you plan to introduce at IDBI Bank to streamline data governance and operational processes?
We are open, we are adapting and we are learning. We have our eyes on industry. Be it IBM Watsonx, OpenAI or DeepSeek, when it comes to AI we are looking carefully to these and beyond. I am actively working with multiple platforms and product companies to understand what they offer viz a viz what we need. I look at these with an open mind. See,one thing which we have to be very careful about is problem solving. I want a tool or product which will help IDBI solve its problems. As for tools , it’s not yet finished hence I can’t share a specific name but I can tell you we have a long term plan and we are working on it.
Automation is one big theme which I am going to drive. I do see we have immense opportunities in automation. From regulatory reports to customers complaints. From department specific data submission to customer segmentation. I am working on a plan to transform manual dependencies. Over a period of time you will hear a lot about it.
With the DPDP ( Digital personal data protection ) act in sight, data governance is on top of the table. Along with my team I am working very actively with one of the big 4 consulting companies to help us access gaps in implementation of it. Through them we are raising questions and trying to get clarity and clarification on the act. Our government is also very supportive and they are taking all our concerns seriously. We are also waiting to see what comes post timeline to submit our feedback in coming weeks. We are among one of the very first banks who has already started working on it.
With the financial sector increasingly adopting AI for predictive analytics and fraud detection, what strategies will you implement to integrate such technologies into IDBI Bank’s data infrastructure?
Our approach to AI is holistic . We are not only looking at predictive analytics and fraud detection. In fact we are examining cybersecurity, customer experience, alternative approaches as well. Our technology and to be precise our data strategies are in the making. I am looking at it in stages. My approach is divided into 3 categories.
First being to continue supporting all regulatory requirements with highest standards. Then we will see what can be easily achieved without much change and I am working with several market leaders to ensure that we make the right decision. Last will be for a longer term where our approach is to get on the build operate and transfer model. We are going to be present from day one of project implementation.
Your past roles involved developing frameworks like Data as a Service. How can similar AI-powered frameworks transform IDBI Bank’s approach to data monetization and risk management?
The concept and implementation of software or platform or cloud as a service has been here for a while now but data as a service is at a very nascent stage. As part of my previous role I was a pioneer in implementing it. The company had started making money. Some of the global banks have been leading this area and making millions by providing data as a service.
In India also you can consider market leader CIC’s ( Credit Information Company) are matured in this segment. They have been selling data. We at IDBI are going to look at this from different perspectives. We are looking to consolidate data use by different departments, doing data democratization. Bringing alternative data as service and helping our business march advances by utilising these. We also have opportunities in collaborating with other banks in developing cohesive platforms for data sharing, data surveillance to facilitate fraud detection and prevention
As a leader in data management, how do you plan to build a tech-driven culture at IDBI Bank, ensuring your team is equipped to handle advancements in AI and big data analytics?
The bank is here to do business. We understand the importance of technology and it is at center stage. We want to embrace the latest technologies. However at the same time we have our own legacy issues such as dependency on vendors, outsourcing, gap in tech skills etc.
What I am happy about is the support and vision of our management. They have given me ownership to ideate , innovate and implement. I am going to assess what we have and then create a skeleton of short term, medium term and long term goals on what needs to be done. We are going to hire real good engineers. We have tied up with NIT’s for fresh grads hiring. We are also hiring industry experts in laterals. These heads will slowly take center stage of core development.
We are also looking for long term solutions with our multiple platforms and technology partners for training, development and support. We have planned to develop technology learning capabilities for the in-house team. My team has already started learning and collaborating on the latest trends in technology. All put together will help in making an impact.
Bhavya Bagga, APAC Media
