CAIIB · ITDB

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Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Information Technology and Digital Banking (Elective) — CAIIB.

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One-liners from this chapter

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Q

What is Artificial Intelligence (AI) in the context of digital banking?

A

AI refers to the simulation of human intelligence in machines programmed to think and learn, enabling banks to automate decision-making, fraud detection, and customer service through algorithms.

Q

What is Generative AI (GenAI) and how is it applied in banking?

A

AI that creates new content; used for reports, chatbots, and summaries.

Q

How is Machine Learning (ML) different from traditional programming in banking applications?

A

Unlike traditional programming where rules are explicitly coded, ML algorithms learn patterns from historical data and improve their performance over time without being explicitly reprogrammed.

Q

What is deep learning and how does it differ from standard machine learning?

A

Multi-layer neural networks that learn complex patterns automatically.

Q

What is Natural Language Processing (NLP) and how do banks use it?

A

NLP is an AI branch that enables computers to understand and generate human language; banks use it in chatbots, sentiment analysis, and automated customer query resolution.

Q

What is a Large Language Model (LLM) and what banking use case does it serve?

A

AI trained on vast text; used for customer support and document analysis.

Q

What is a chatbot in digital banking and what regulatory considerations apply?

A

A chatbot is an AI-powered conversational interface used for customer service; RBI guidelines require banks to disclose when a customer is interacting with a bot and ensure data privacy compliance.

Q

What is the metaverse and how might banks offer services within it?

A

Virtual digital world where banks can open virtual branches and offer services.

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