'AI analyses body language, etiquette, and communication skills, providing an in-depth performance matrix and a ranking system to help employees identify areas of improvement.'
Government-run banks are now taking the help of artificial intelligence (AI) to train employees, especially those on the front desk, to serve customers in a better way and improve frontline banking services.
It comes against the backdrop of stagnating deposit growth at major public sector banks and concerns in the ministry of finance about inconsistent customer service, a senior government official said.
"PSBs have begun taking concrete steps to strengthen their customer engagement strategies. As part of this effort, they are increasingly leveraging artificial intelligence and other innovative tools," said a senior bank official.
The initiative follows recent surprise inspections by Department of Financial Services Secretary M Nagaraju where officials observed gaps in behaviour, professionalism, and responsiveness among branch-level staff of PSBs.
"Customer service is our top priority at the bank, and we are deeply focused on improving it. Customer service is becoming the central theme of our efforts," Ashok Chandra, MD and CEO, Punjab National Bank, said.
"As part of this, we've introduced a quick response-based feedback system for customers to rate the service provided by our employees. After completing a transaction, customers will receive a prompt to provide feedback on the service they received, which is integrated with our head office system for real-time tracking and evaluation," Chandra added).
PNB is also placing a strong emphasis on soft skill development for its employees, Chandra added.
"To enhance training, we are incorporating conversational AI into our programmes. This AI conducts half-hour sessions where it poses challenging and sometimes difficult questions," Chandra explained.
"It analyses body language, etiquette, and communication skills, providing an in-depth performance matrix and a ranking system to help employees identify areas of improvement," added Chandra.
"We are integrating augmented reality and virtual reality into our training modules.
"These technologies will provide a more immersive and realistic learning experience, helping us pinpoint areas where employees need improvement," Chandra said.
A senior banker at another PSB said soft skills programmes are being piloted in some districts, with early feedback indicating higher customer satisfaction and greater employee confidence.
"If scaled effectively and matched with adequate staffing, this blend of technology, training, and human empathy could offer a transformative shift in PSBs," he added.
However, bankers say the issue isn't merely behavioural, it's structural.
Several PSB employees have pointed to acute staff shortages, rising workloads, and administrative burden as key contributors to service fatigue.
"In many branches, a single officer is handling everything from cash to compliance. There's barely time for a proper conversation," said a manager at a rural PSB in Uttar Pradesh.
Data from the Reserve Bank of India indicates a steady decline in the workforce of PSBs over the past decade.
In the financial year 2013-2014, PSBs employed 859,692 staff members, a number that decreased to 756,644 by 2022-2023.
This represents an annual reduction of approximately 15,000 to 20,000 employees each year.
The data also highlights a significant reduction in clerical and subordinate officer positions within these banks.
The number of clerks dropped from 315,292 in 2013-2014 to 257,771 in 2022-2023. Similarly, the number of subordinate officers decreased from 156,218 to 101,555 during the same period.
During the December quarter of FY25, PSBs recorded a retail deposit growth rate of 8.8 per cent, while private banks achieved a stronger double-digit growth of 13.5 per cent.
This robust show by private banks was primarily driven by a surge in term deposits.
In FY24, complaints received by the Office of the Reserve Bank of India ombudsman against PSBs were also among the highest at 38.32 per cent. This compares to 34.39 per cent by private banks (34.39 per cent).
Feature Presentation: Ashish Narsale/Rediff
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