RT team
According to a recent report by PwC India, a staggering 90% of financial institutions in India are leveraging artificial intelligence (AI) and Generative Artificial Intelligence (GenAI) as pivotal enablers of innovation. The report, titled ‘Mapping the FinTech Innovation Landscape in India’, also highlights that data analytics is playing a critical role, with 74% of respondents acknowledging its importance in enhancing decision-making and insights in the financial services sector.
The survey included responses from 31 financial institutions, encompassing banks, insurance firms, and fintech companies, revealing a strong focus on AI and GenAI for driving innovation. Customer experience and engagement, including acquisition, onboarding, and servicing, were identified as primary innovation targets by 84% of the participants, while over half emphasized product distribution as a critical area for innovative efforts.
The responses also reflect a concerted attention to risk management, operations, and regulatory compliance, indicating the industry’s commitment to maintaining stringent governance frameworks amidst rapid technological progress.
Mihir Gandhi, Partner and Payments Transformation Leader at PwC India, commented on the necessity for fintech companies to balance growth with the challenges of digital security and regulatory compliance. He noted the importance of adapting business models to focus on profitability and customer-centric innovation.
Furthermore, 65% of respondents considered risk mitigation and regulatory adaptability as crucial, with 45% preferring to drive innovation through internal initiatives. Vivek Belgavi, Partner and Leader – Fintech, Alliances, and Ecosystems at PwC India, emphasized the significance of collaborative innovation for achieving faster market entry, enhanced productivity, and reduced operational costs.
The report also identified common challenges faced by companies, such as resource constraints and the complexity of new technologies, with a focus on collaboration and partnership to overcome these hurdles for better innovation outcomes.
