“India has set itself the ambition of becoming a developed economy by 2047. To support that ambition, the next wave of AI in banking must take us deeper into the economy — to rural India, small businesses and customers whose financial histories may not fit conventional [credit] models,” he said.
“AI can support better farm-level decisions while data-driven risk assessment, digital records and satellite imagery can help banks improve both credit access and portfolio management,” Setty said, adding that banks were already adopting some of these technologies in agricultural lending.
The challenge is to move such applications beyond pilots and make them affordable and practical enough for adoption to the last mile.
Setty’s comments came as banks, which have strengthened their balance sheets and asset quality in recent years, are increasingly looking at AI to improve customer service, employee productivity, risk management and credit processes.
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