This Startup Is Turning Banking Customers Into Habitual Users With Its Unique AI Product

Aimed at solving challenges in the financial sector, Hyderabad based AI startup, 3LOQ has introduced a one of its kind product—Habitual.AI. Founded by Carnegie Mellon alumni Sunil Motarparti and Anirudh Shah, 3LOQ has earlier been listed as one of the ten emerging analytics startups in India to watch out for by Analytics India Magazine.

Habitual.AI by 3LOQ automates the process of building habits, enabling banks to create habitual users across digital and mobile platforms. The AI-based tech by the startup promotes habitual usage of digital banking and mobile platforms by recommending features that are undiscovered, relevant and immediately useful, to every customer.

For instance, the AI will be able to help a customer who makes frequent fund transfers at the branch, with the recommendation to use an IMPS fund transfer through the mobile app. According to a client case study published by 3LOQ, Habitual.AI has been able to deliver a 145% increase in transactions, 45% reduction in customer churn and 75% increase in users who made four or more transactions a month – all by building customer habits.

“Because habit-building is a progressive activity, the tech takes the long view to build product utility and relevance for each customer. Helping customers use products in ways most useful to them is a better way to keep customers engaged and build habitual product usage, than by giving them reward-based promotions that may be irrelevant and are likely to be considered spam,” said Anirudh Shah, founder, 3LOQ.

It will also be capable of  generating personalised recommendations for more than 10 million customers based on 1TB of transaction data within 6 hours on commodity hardware. AI automatically categorises unstructured transaction data into structured data sets, which is used to profile customers at scale to generate personalised recommendations that build habits.

As most users today prefer their entire financial life cycle on digital channels, Tauseef Khan, growth manager at 3LOQ believes that there is a significant potential for Habitual.AI with banks looking to drive and sustain customer engagement across new channels.

“Habitual.AI triggers intent-driven usage at scale by using cognitive computing, analytics and machine learning. It learns how customers use a digital banking product, and provides personalised feature recommendations that put them on the path to long-term loyalty. This enables banks to create customer habits, reduce churn and optimise marketing spend,” he said.

What makes Habitual AI unique?

• Habitual.AI platform enables banks to learn their customers and lead them towards building a habit of using a product more frequently.
• It is world’s first AI engine that can build habits.
• It can handle structured and unstructured data ingestion from any source, at several TBs per day.
• It runs on commodity hardware and lives up to its enterprise-grade stamp with built-in fault tolerance, high availability, and horizontal scalability.

In a nutshell, Habitual AI will find its use cases around:  

• Digital banking, accelerating adoption of digital services like net banking.
• Primary banking, recommending banking products that are most likely to result in customers choosing a particular financial institution as their primary bank.
• Card/Payments, finding and recommending merchants and categories that a customer is most likely to buy from using a bank’s credit card.

Habitual.AI is already engaged with three leading Indian banks. The company is also in talks with financial institutions in Asia, the Middle-east and the US.