Exploring the impact of Generative AI on the Banking and Financial Service Industry in India

Exploring the impact of Generative AI on the Banking and Financial Service Industry in India

As one of the fastest growing economies in the world, India is in the midst of riding the digital transformation wave. Its AI market is forecasted to have one of the largest growth rates, with AI spending expected to reach $5.1 billion by 2027.

Driven by this growth, banks and financial services in India are exploring a myriad of generative AI applications. In fact, according to the 2024 Adobe Digital Trends - Asia Pacific and Japan Report, it was found that 72% of senior executives in India say they have generative AI pilots or solutions in place.

With a growing population size and a diverse content creation landscape, we spoke to a couple of BFSI leaders at Adobe Best of Summit: India Addition, who shed light on the opportunities that generative AI is bringing to their sector.

Enabling marketers to do more

Many Indian brands such as ICICI Home Finance recognise consumer's increasing demand for content personalisation. Within the region, there's the added reality of operating in multiple geographies and languages, which adds greater pressure on marketers to increase content velocity.

BFSI brands are now looking to leverage generative AI to help them meet this demand. According to the Adobe Digital Trends - Asia Pacific and Japan Report, 50% of Indian practitioners said they are consolidating / integrating content and marketing tools for improved creation and activation.

"Generative AI allows us to do mass customisation at scale and across multiple segments at the same time," says Federal Bank's Chief Marketing Officer M.V.S Murthy.

Generative AI addresses "the challenges of content creation speed and scale in the creative marketing automation space," says Prativa Mohapatra, Vice President & Managing Director, Adobe India.

With exponential content needs, BFSI marketers can use generative AI to scale content creation and meet the growing demand for more personalised and timely customer experiences.

Fine-tuning models to deliver the right experience

BFSI leaders are looking to do more than just improve their existing processes. They need to reconstruct the way they deliver services. To do this, they need to ensure the necessary capabilities, skill sets and investments for a generative AI-future are in place.

Across industries in India, 74% of senior executives say they are reorganising teams and functions to accommodate the use of AI. "We have provided a common infrastructure which can be used by different teams, and at the same time there can be a lot of lessons to be leant and exchanged with each other," shares Shashidhar Bhat, Executive Vice President and Chief Operating Officer, Bajaj Technology Services.

Fine-tuning generative AI tools before deployment helps eliminate biases, prevent unexpected outcomes and ensures the technology not only functions correctly, but provides ethical, reliable and valuable interactions, which are critical for maintaining consumer trust.

While generative AI is bringing transformative potential in BFSI, it is crucial that they are implemented in the right way.

Generative AI success is rooted in responsibility

Building and maintaining consumer trust is no longer just an opportunity, but also fast becoming a mandate for organisational success. According to the Future of Trust Study for India, 93 per cent of Indian residents say they want to know if the content they are consuming has been generated using AI.

Across Asia Pacific, India has markedly higher levels of preparation, with 70% of senior executives saying they are implementing governance and ethical guidelines and 74% developing and implementing policies for use (Source: Adobe Digital Trends - Asia Pacific and Japan Report).

To maintain customer trust, BFSI businesses need to prioritise AI transparency and ensure it is used responsibly. "With vast-scaled opportunities, wider risk comes to the table, responsible use of generative AI in India is crucial to mitigate potential harms and ensure ethical practices," says Mohapatra.

While generative AI introduces transformative potential, successful scaling will depend on prudent governance and transparency.

As the BFSI sector in India continues to adopt generative AI, the focus on responsible implementation and customer trust will be paramount. By leveraging generative AI strategically and ethically, banks and financial services companies can drive innovation and enhance customer experiences, solidifying their position in a rapidly evolving digital landscape.

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