Context:
Government-run banks in India are increasingly leveraging artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) to enhance customer service quality and boost employee soft skills, especially at the front desk. The move follows surprise inspections by the Department of Financial Services (DFS) that revealed gaps in professionalism, responsiveness, and behavior among branch-level staff.
Key Developments:
- AI-Powered Employee Training:
- PSBs like Punjab National Bank (PNB) are using conversational AI to conduct 30-minute mock sessions.
- These sessions assess communication skills, etiquette, and body language.
- Employees receive a performance matrix and rankings to identify improvement areas.
- Immersive Learning via AR/VR:
- AR and VR modules are being introduced to simulate real-life banking scenarios.
- This provides employees with realistic, immersive training experiences.
- Real-Time Customer Feedback:
- A quick response (QR)-based feedback system has been deployed.
- Customers rate their experience post-transaction, with data sent to the head office for real-time monitoring.
- Soft Skills Pilot Programs:
- Pilots are underway in several districts to train staff in empathy, active listening, and service etiquette.
- Preliminary feedback shows higher customer satisfaction and employee confidence.
Structural Issues
- The push for AI training comes as deposit growth stagnates and customer service inconsistencies grow in PSBs.
- Staff shortages and heavy administrative workloads continue to undermine service delivery.
- In rural branches, a single officer often manages multiple functions (cash, compliance, etc.), leaving little time for customer interaction.
