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Informist, Friday, Sept. 11, 2026

 

--IndusInd Bank MD: Need to fundamentally re-think AI journeys 

--CONTEXT: IndusInd Bank MD, CEO Rajiv Anand speaking at Global Fintech Fest 

--SEBI ED: AI deeply embedded in tech, creates slight tension for us 

--CONTEXT: SEBI ED Avneesh Pandey speaking at Global Fintech Fest 2026

 

MUMBAI – Banks need to fundamentally rethink their customer journeys rather than simply use artificial intelligence to automate individual processes, IndusInd Bank Managing Director and Chief Executive Officer Rajiv Anand said at the Global Fintech Fest 2026. "I think we need to fundamentally rethink journeys, not that I'm going to automate a certain piece, but here is an opportunity for you to completely rethink it," Anand said.

 

He said banks should identify AI use cases that could make a meaningful difference either to customers or their profit and loss, while determining the return on investment upfront. "Cost is going to become an issue and I think it's very important to figure out what RoI (return on investment) is going to be upfront and so therefore, pick problems that are going to make a meaningful difference either to the customer or to the P&L (profit and loss statement)," Anand said.

 

While AI could deliver differentiated customer experiences and productivity improvements, the extent to which it would translate into direct benefits for banks remains uncertain, he said. Anand compared the development of AI with the adoption of mobile banking and UPI, saying that although digital adoption has significantly improved customer experience and reduced the cost per transaction, banks have also seen transaction volumes increase.

 

Anand also cautioned that banks could not completely eliminate human intervention from their processes because of the consequences of errors in financial services. "In banking, it's not good enough," Anand said, referring to the potential for AI models to be 99?curate. "I don't see the man in the middle model going away from banks anytime soon."

 

Securities and Exchange Board of India Executive Director Avneesh Pandey said regulating AI is challenging because the technology is deeply embedded in the broader technology ecosystem. "AI per se, it is deeply embedded in technology and this is what creates a bit of tension for us," Pandey said. He said regulators need to remain technology-neutral and technology-agnostic while developing guidance for regulated entities. SEBI has consequently focused on a risk-based supervisory approach to AI, he said.

 

Banks and other regulated entities need to maintain an inventory of their AI use cases and ensure that boards and managements are aware of where AI is being deployed, particularly because the risks can differ between customer-facing applications and internal efficiency tools, he said.

 

Data governance is also fundamental to responsible AI adoption, Pandey said, particularly as financial institutions increasingly deploy AI for areas such as KYC and onboarding.

 

Pandey also stressed that financial institutions would remain accountable for the AI systems they deploy, irrespective of whether the underlying technology is developed internally or provided by a third-party vendor. "No matter what, you are accountable and responsible for AI," he said. SEBI is also working to strengthen oversight of technology products used by regulated entities, including checks for vulnerabilities and software bill of materials, Pandey said.

 

Ultimately, banks, financial institutions and regulators would need to co-create the future of AI in financial services, Anand said, adding that customer trust would be central to adoption. "You can outsource capability. But as Mr. Pandey said, you cannot outsource responsibility," Anand said.  End

 

Reported by Kabir Sharma and Priyasmita Dutta

Edited by Avishek Dutta

 

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