Indian Banks & Agentic AI: Rethink Operations Now

Indian banks face a major shift in how they operate, as a new report suggests they must fundamentally rethink their models due to advanced AI. This report, from FICCI, IBA, and BCG, highlights that simply digitizing current processes is not enough. The real opportunity lies in redesigning work to let AI handle repetitive tasks, freeing employees for decisions needing judgment and expertise. Many banking processes still involve significant human effort and paperwork. For example, a single loan can require over 25 documents and 50 manual data fields, with multiple levels of human review. Customer service also ties up many employees in routine interactions. The report distinguishes between "coding the known," which automates rule-based processes, and "agentic AI." Agentic AI can work with unstructured information like voice and text, interpreting user intent and performing tasks across various scenarios. This could automate processes previously too complex for traditional systems. Conversational banking, using voice and chat-based AI, is also identified as a significant emerging opportunity. This matters because it signals a fundamental change in how banking services will be delivered and experienced.