Non-banking financial companies (NBFCs) are becoming important drivers of financial inclusion in India, offering loans to underdeveloped retail, small businesses, and consumers. According to ICRA Ratings, the industry has grown dramatically in recent years and is expected to rise by 10-12% in FY2024.

Despite their strong growth, NBFCs are experiencing a number of challenges, the most significant of which is increased competition from emerging Fintech firms and increased demand for a superior client experience. 

In this blog, we will look at the obstacles that Indian Insurance Companies and NBFCs are encountering, as well as the automation solution provided by GenieTalk.ai, now made even better with the support of Generative AI and modern LLMs:

Challenges Faced:

i) Insurance Sector-

• Debt Collection- Collecting premiums from policyholders within the specified timeframes can be a complex task. It requires efficient processes, effective communication, and strategic planning to ensure timely payment and reduce instances of default.

• Claims Handling- Insurance leaders need to ensure seamless and efficient claims processing to provide prompt settlement and customer satisfaction. This involves accurate assessment, verification, and validation of claims, which can be time-consuming and prone to errors. Additionally, fraudulent claims pose a constant threat, requiring robust fraud detection and prevention mechanisms.

• Risk Assessment- Accurate risk assessment is essential for insurance companies to price policies appropriately and maintain profitability. However, accurately evaluating risks and determining premiums can be a complex task. Factors such as emerging risks, changing market dynamics, and evolving regulations add to the complexity.

• Premium Calculations- When calculating premiums for life and health insurance plans manually, a large amount of time and effort is required by a human agent, resulting in agent burnout and minor details being overlooked.

• Customer Engagement- With increased competition from emerging every business needs to improve their customer engagement in order to keep customers for an extended period of time.

ii) NBFC-

• Superior CX- Customers’ preferences for online conversations and engagements have been greatly influenced by interfaces developed on AI-based NLP across various sectors. IVRs have been shown to reduce CX, while mass automated calls have been shown to be ineffective.

• Loan Recovery- The recovery of interest-bearing loans is an NBFC’s most complicated process. People extending the entire procedure increases the amount of interest to be paid, making it difficult to collect using human agents and third-party loan recovery agencies.

• Customer Churn Rate- There are various variables investigated, which were anticipated to be the reasons for the increase in the churn rate major being the customer experience and a lower CSAT Score, apart from the documentation process, interest rates and more. 

• Rising Operational Costs- Managing operational costs while ensuring technological advancements is a delicate balance that NBFCs must navigate. Implementing and maintaining advanced technologies, and cybersecurity measures, and complying with regulatory issues and requirements can increase expenses for NBFCs, creating unwanted hassles.

• Cost of Collections- The main difficulty for NBFCs is minimizing the number of defaulters. Customers rely heavily on reminders via various media and phone calls to guarantee timely repayments. In fact, not receiving any reminders is the most prevalent cause of missing a payback. 

Biggest Opportunity for NBFCs & Insurance Sector: AI

According to PWC Research, the top corporate incentive for integrating AI is improving customer experience.

PwC’s AI Predictions report backs up our findings on a worldwide scale. Improving efficiency is the next crucial business driver for AI since data abundance has significantly increased manual tasks, which need to be automated to stay ahead in the market, with cost savings and improved efficiency.

7 Reasons to Look Out for Automation through Voice Assistants

1. Cost Efficiency: With our Virtual Agent, you can achieve more in terms of quality, output, and precision without hiring any additional human agents while minimizing your cost per lead, enriching your database, and keeping your CRM up to date to fuel your sales funnel.

2. Frictionless Customer Experience: They assist by creating tailored marketing efforts based on consumers’ history, preferences, and buying behaviours. This involves providing personalized advice, product recommendations, and prompt responses for better decision-making.

3. Augmenting Agent Productivity: With the virtual agents managing the client calls concurrently, and also handling the seasonal surge in volumes, all manual tasks can be readily completed with automation, freeing up human resources for more complicated chores and allowing them to focus more on conversions.

4. Streamlined Operations: Given the capabilities of interactive virtual agents, you can handle each and every contact 100X more efficiently, offering run-time-tailored solutions to address the query and enhance operational flow.

5. Scalability and flexibility: Voice AI-powered agents can handle a high volume of simultaneous client engagements, guaranteeing scalability and flexibility in addressing consumer requests.

6. Insights and Analytics: Voice Assistants generates valuable insights from customer interactions, helping insurance companies gain a deeper understanding of customer preferences, behavior, and market trends for more effective decision-making and strategy formulation.

7. Speed and Accuracy: Providing unmatched accuracy, this technology is taking businesses by storm. It determines the needs and genuine intent behind a purchase. They can offer rapid human-like responses since they are optimized for unique client needs and preferences.

Adding Value: Generative AI

Generative AI has emerged as a disruptive force in the B2B market, captivating businesses with its ability to generate precise responses and revolutionize conversations. Its transformative potential extends beyond mere response generation, encompassing training intents, executing tasks, and orchestrating workflows within conversational interactions.

The process of training intentions has historically posed significant challenges in constructing effective NLU bots. However, leveraging our patented technologies, we have successfully mitigated these hurdles by harnessing the power of pre-trained virtual agents. 

To further amplify these advancements, we are integrating cutting-edge Generative AI LLMs such as GPT-4 by OpenAI, BARD, and Palm APIs, to further enhance the capabilities of our Voice Assistants.

Looking ahead, Generative AI will unlock new frontiers by facilitating empathetic conversations, seamlessly connecting workflows, and dynamically generating actions in real-time. As we continue to push the boundaries of what is possible, the future of work and business is set to be reshaped by the unprecedented powers of Generative AI. 

The momentum is undeniable, with the Global Generative AI market projected to reach a staggering $53.9 billion by 2028, boasting a remarkable CAGR of 32.2% during the forecast period. Exciting times lie ahead as we embrace this transformative technology and unlock its immense potential.

Giant Leap in Capabilities

Generative AI is ushering in a new era in the finance sector, transforming the way workflows are managed, financial planning is conducted, market analysis is performed, and client engagement is executed. 

Addressing the Change: The ever-changing role of this form of AI and the powerful LLMs in the NBFC and fintech industries has enormous potential, with unimaginable levels of automation, personalization, and innovation on the horizon.

Organizations are positioned to unleash new possibilities, create development, and remain ahead in an increasingly competitive market as the industry embraces this revolutionary power in terms of-

1. Better Customer Services

2. Human-like Conversations

3. Context Management 

4. Quicker Time to Value

Success Stories

I) A leading Health Insurance Company

Backed by the trust of 1.5 crore+ happy customers over the past 18 years, this renowned health insurance company was concerned about its ability to qualify and monitor a sufficient number of conversations to be confident that agents follow best practices and rules.

#Challenges: 

1) Conversion Rates too low

2) Expand & Diversify the Reach

3) Handling Huge Call volumes

#Solution- The company realized that advanced Conversational AI can do what human agents cannot: analyze every conversation, and deliver detailed insights.

Following a successful proof of concept, this insurance company chose GenieTalk.ai’s Conversational Service Automation platform for workflow automation & in-depth analysis to enhance decision-making.

In the initial implementation, the insurance leader was able to save time per agent, freeing them up for more complicated work. Furthermore, the results were immediate: agents who used the solution immediately realized the benefits of automation, with a higher connect ratio and call completion rate.

#Results:

1. 88% of Agents’ Time saved
2. 85% Connection Rate
3. 60% Call Completion Rate

II) A Leading NBFC

With a diverse portfolio that helps meet financial needs and build an individual’s financial resilience, India’s most diversified NBFC serves over 100 million clients. It is committed to continual innovation via the intelligent application of technology, data, and analytics to provide seamless, simpler, and personalized experiences.

#Challenges:

1. High Drop-off Rate
2. Large Call Volumes
3. Decision-making Support

Even with a team of 100’s of individuals, the company’s sales team could not reasonably dial and monitor every call personally. In fact, the team was only able to manage 5-10% of all lead data, with the dropout rate increasing with each call.

#Solution-

They recognized that AI and powerful LLms can perform tasks that human agents cannot: dial, monitor, and analyze each conversation. The finance company then chose GenieTalk’s Conversational Automation technology with a successful POC.

Genie VA automatically qualifies and scores the leads for sales professionals to prioritize, reducing time with 100% AI-assured leads.

Furthermore, because its workflow is automated, the sales force can focus on conversions and respond rapidly to any consumer concerns.

#Results:

1. Augmented Agent Productivity by 88%
2. 1000’s Concurrent calls dialled by GenieVA.
3. Detailed Reports of Campaigns for Smarter Decision Making.

Next Steps:

GenieTalk.ai enabled them to transform unstructured huge datasets into valuable and actionable insights for providing delightful customer experience and satisfaction, lowering churn, increasing revenue through up/cross-sell management, and improving the sales performance of the human agents.

Based on the solution’s abilities, the client can look into further ways to improve outcomes. Future considerations will include: 

– Lowering the Churn Rate. 

– Identifying New Revenue Opportunities.

– Improving Sales Effectiveness.

The Road Ahead

Even in the case of relatively established technology, the potential for AI to contribute significant increases in productivity and efficiency across the value chain is great. Chatbots, for example, are extensively utilized; nevertheless, few financial institutions are leveraging the data generated by them to rethink & revise their operational processes.

Many leaders are gradually switching to digital voice assistants because of the growing use cases and benefits.

P.S.- According to a PWC report, 57% of FS organizations believe AI will provide them with a competitive advantage over their counterparts.

Furthermore, with the growth of AI, organizations throughout the world are debating how to fully achieve AI’s potential while addressing the possible concerns related to data security, fraud, and other risks associated with it.

Growth Opportunities with GenieTalk.ai

1. Accelerate Time-to-Market: Experience the power of Genie Voice Assistant in just 1 week, eliminating lengthy training and development periods. Witness the speed and efficiency that can transform your operations in no time!

2. Proof of Concept (POC): Get a personalized solution that not only meets your present requirements but also future-proofs your business. Our POC is tailored to your specific needs and showcases the comprehensive value of GenieTalk’s automation solution, all within 48 hours.

3. Seamless Call Rescheduling: Engage customers, educate them about financial products, and effortlessly reschedule calls at their convenience. Our service not only caters to their needs but also saves costs, ensuring a hassle-free experience.

4. Boost Agent Productivity: Watch as GenieVA turns raw data into actionable insights, surpassing the capabilities of human agents by 100X. Automating repetitive tasks, frees up their time, enabling them to focus on more complex activities and skyrocketing their productivity by up to 95%.

5. Enhanced Operational Efficiency: Handling thousands of customer contacts daily becomes effortless with Genie VA. Our solution equips you with the competency and flexibility to manage sudden surges in volumes, ensuring seamless operations around the clock. Experience the significant advantage of 24/7 call handling, driving operational efficiency to new heights.

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Did you know- 83% of finance firms have identified improving customer experience as the main motivator for AI-enabled use cases, states a Pwc Research Report?

For long-term success, both new entrants and NBFC leaders must constantly provide excellent client experiences while also innovating by implementing cutting-edge technology.

Looking at the existing situation, there is a lot of room for development, especially for conventional NBFCs and Insurance companies utilizing traditional methods.

Are you an AI-ready firm looking to capitalize on the rapidly growing Voice AI wave with our intelligent voice assistants? 

Connect on a call with our AI experts, we’d be happy to assist you.