“AI is the electricity of the new age - it will power everything we do.” - Andrew Ng, Co-founder of Google Brain
Transforming lending with intelligence
Indian lenders are turning to Artificial Intelligence (AI) and Machine Learning (ML) to strengthen their core operations. From credit appraisal to customer experience and product innovation, banks are deploying AI across departments to enhance efficiency and accuracy. Senior bankers note that AI is increasingly integral to risk management and Treasury functions.
Redefining customer interaction
Praveen Kutty, MD and CEO of DCB Bank, said AI and ML are used across access points, bots, emails, and voice interactions to resolve customer queries and detect fraudulent accounts. Speech haptics and interactive AI tools are helping banks create self-correcting systems that improve resolution quality. “The possibilities are endless in this field,” Kutty noted, emphasizing the technology’s expanding reach.
Strengthening public sector capabilities
State Bank of India (SBI) has made major strides with its Yono 2.0 mobile app, integrating AI for hyper-personalized fraud management and loan processing. The bank plans to extend AI across lending and Treasury domains. Similarly, infrastructure financier NaBFID uses AI to monitor projects and evaluate loan proposals, ensuring data-driven decisions.
Automation in Treasury functions
A recent EY India survey found that corporate Treasury teams now prioritize automation powered by AI. Eighty-five Treasury leaders indicated that Indian companies are going beyond traditional risk and cash management to adopt AI-driven forecasting, analytics, and shared services, steps that will define the Treasury of 2030.
The road ahead for Indian finance
Experts agree that AI’s role in banking will only expand as institutions focus on automation, data insights, and risk analytics. Microfinance firms are already using AI to predict delinquencies and improve collection efficiency, signaling a broader industry shift toward intelligent automation.
Summary
AI is reshaping Indian banking from customer service to Treasury management. With major lenders deploying AI-driven tools for risk mitigation, fraud detection, and credit analysis, the financial sector is moving toward a more intelligent, automated, and data-centric future.
Food for thought
Can AI truly replace human judgment in credit and risk decisions, or will it only augment it?
AI concept to learn: Speech Haptics
Speech haptics combines voice interaction with tactile feedback, allowing AI systems to interpret tone and context better. In banking, this technology enhances customer support by detecting emotion and intent, enabling more natural and accurate automated responses.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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