Generative AI Poised to Boost Indian Banking Operations by 46%, Says RBI
The Reserve Bank of India (RBI) has highlighted the significant impact Generative Artificial Intelligence (AI) can have on banking operations in India. According to their recent report, AI technology could enhance efficiency in banking processes by up to 46%.
Financial institutions stand to benefit from AI's ability to analyze customer behaviour more accurately, streamline operational workflows, and deliver personalised services at scale. This improvement comes at a time when banks are seeking ways to optimize both customer experience and internal productivity.
Why AI Adoption is Accelerating in Financial Services
The report outlines several drivers behind the growing use of AI in banking, including:
- Enhancing customer experience with faster, more responsive service
- Improving employee productivity through automation of routine tasks
- Boosting revenue by identifying new business opportunities
- Reducing operational costs by minimizing manual interventions
- Ensuring compliance with evolving regulatory requirements
- Creating innovative financial products that meet changing customer needs
Generative AI’s Role in Risk Management and Customer Insights
Generative AI is especially valuable for advanced analytics. It helps banks better understand customer behaviour patterns, manage risks more effectively, and control costs more efficiently. This capability can lead to smarter decision-making and more targeted service offerings.
One practical application is AI-powered alternative credit scoring models. These models use non-traditional data sources—such as utility bill payments, mobile usage patterns, GST filings, and e-commerce transactions—to evaluate creditworthiness. This opens up credit access to millions of underserved or “thin-file” customers who lack traditional credit histories.
Improving Customer Service with AI Chatbots
AI chatbots have become a key tool in transforming banking customer support. By handling routine queries 24/7, chatbots provide faster issue resolution and reduce the workload on human staff, allowing them to focus on more complex tasks.
Looking Ahead: AI’s Economic Impact on the Banking Sector
Globally, AI adoption in financial services is increasing steadily. The RBI report projects that generative AI alone will contribute significantly to industry revenue, with the segment expected to surpass Rs 1.02 lakh crore (approximately USD 12 billion) by 2033. The annual growth rate for this segment is estimated between 28-34%.
With thoughtful integration, AI can make banking more efficient, inclusive, and customer-friendly while fueling growth across the sector.
For professionals working in operations, understanding how AI can optimize workflows and reduce manual effort is essential. Exploring relevant AI courses and training can provide valuable skills to stay ahead in this evolving landscape. You can find specialized AI training options here.
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