Banking has moved from physical branches to the palm of your hand. With voluminous data analytics and the latest technology to mine that information, you are inundated with automated messages and calls. In the latest conference call with analysts, Bajaj Finance's management provided a detailed analysis of how the company is using AI to boost credit growth.
In the quarter gone by, Bajaj Finance reported loan disbursements of Rs 1,600 crore, or nearly 10% of total loan disbursements, through AI-powered call centres. This is a significant boost to future profit prospects, as the company spends less on average customer acquisition or loan costs. The company promises to up the game. The stock market loved the idea. Bajaj Finance shares jumped last Friday, even as overall market sentiment was negative. Bajaj Finance is not alone. Every other bank and non-banking finance company that sells loans and financial products to you is likely to use Artificial Intelligence tools for outreach.
The outcome of all that would be a surge in dark patterns. The Reserve Bank of India issued a detailed notification last week for banks and non-banks to follow to curb the mis-selling of financial products. The notification lists about 11 dark patterns or ways of mis-selling. “Deceptive design choices intended to trick you into buying products you do not need or entice you to share data that you would rather keep private,” the RBI notification explains.
If you have felt nudged into taking a high-interest loan or found it impossible to cancel a subscription payment, these rules are your shield, the RBI stated.
You can lodge a complaint within a stipulated time after the purchase, even if you feel someone hurried you into buying any financial product. That feeling of being hurried could intensify as artificial intelligence voice bots or advisors play a bigger role in reaching out to you. The conversations you may have would be relentless and devoid of any emotion. It would be a challenge to deal with them without getting upset. However, it is important to come to terms with the reality of the new world. Technology advances are shifting business processes much faster than we think. The good side to it is that there would be a trail of every such interaction that will help you build your case of mis-selling. Your record-keeping will matter going forward. You may want to save every interaction while buying or investing in any financial product.
What does it mean to you
This column has always stood for knowledge as a weapon against fraud, mis-selling, and financial loss. Financial market regulators may launch awareness campaigns and hold public events to help you learn. However, your willingness to learn will make all the difference. You have to invest in your knowledge, and effectively, your well-being. You need professional help to understand financial products and an appropriate asset allocation. Many of you get unnerved by complex financial terms, and it is tough to understand the regulatory language intended to protect you. In such a situation, you need to read up on information from multiple resources.
For simple financial concepts, the AI-led tools help. In fact, if you have a wealth manager or a financial advisor, you can make that interaction meaningful by preparing for the meeting. Over time, either your financial advisor could deploy an AI model to discuss your money with you, or you may simply use an independent tool online. In the future, these tools could get smarter and more efficient in providing appropriate advice as they gather more information about your preferences and risk appetite. You may have noticed that ‘prompting’ AI tools has emerged as a skill. If you pose the right questions, you will get relevant and effective responses.