Canara Bank, one of India’s leading banks, is embracing data analytics and AI technology to drive its growth and improve its customer conversion rates. According to K Satyanarayana Raju, the MD & CEO of Canara Bank, a significant portion of the bank’s incremental growth in areas such as current and savings accounts, as well as housing and vehicle loans, is attributed to data analytics and AI/ML initiatives. Currently, this accounts for around 8% to 11% of the bank’s growth, but there is potential for it to increase to 20-25%.
Raju highlights how these technologies have enabled the bank to streamline its lead generation process, allowing employees to spend more time on converting potential customers. Traditionally, the bank would spend 80% of its time on lead generation, interacting with customers individually and seeking recommendations. With the implementation of data analytics and AI/ML, the bank has been able to save 80% of that time by automating lead generation through accurate data analysis. The leads generated are then handed over to the branches, reducing the conversion process to just 20% of the overall workflow.
In the past two years, Canara Bank has heavily invested in data analytics and has made significant efforts to clean its legacy data. The bank recently partnered with Microsoft Azure to establish a data lakehouse for storing refined data. Additionally, Canara Bank inaugurated a Data and Analytics Centre (DnA) in Bengaluru, aiming to drive further innovations. The bank plans to enhance its real-time alert capabilities by collaborating with organizations such as Cibil, a credit information company. This integration would enable Canara Bank to receive alerts when their customers approach other banks, allowing their team to approach them promptly.
Canara Bank is also making strides in digitization across various areas. In September, it appointed Vishal Bhatia, the former CTO at Kotak Cherry, as its chief digital officer. The bank recently conducted its first hackathon, which garnered 250 ideas from teams, focusing on solutions related to customer experience, default prediction and prevention, fraud prevention and prescription. According to Raju, conducting a hackathon can be challenging, but it provides a wealth of valuable insights that can be utilized to build solutions for the bank.
By embracing data analytics, AI, and digitization, Canara Bank is positioning itself to enhance customer experiences while driving growth and ensuring future success. With its continued investments in technology, the bank is proactively adapting to meet the evolving needs of its customers in the digital age.
