Agentic AI is emerging as a game-changer in financial services, enabling intelligent automation, personalised engagement, and data-driven decision-making.
From frictionless onboarding to predictive analytics, the integration of Agentic AI is expected to drive the next phase of digital transformation in banking and insurance, BFSI finance tech leaders said at the ETBFSI CIO Digital Conclave 2025.
Kallol Basu, CTO, National Insurance Company, expressed strong optimism about the future of AI in customer onboarding. “AI makes onboarding as frictionless as possible for customer onboarding. Agentic AI goes one step ahead. I’m very upbeat about Agentic AI to come by 2025-2026. There are activity trackers that can decide your insurance premiums accordingly.”
Sayak Das, Chief AI Officer, Airo Digital Labs, echoed this sentiment, stating that AI is no longer in its experimentation stage. “It’s not an experimentation stage with AI anymore. Organisations are planning to eliminate an entire function through the incorporation of Agentic AI.”
Customer experience as a differentiator
Leaders across financial institutions emphasised the role of technology in enhancing customer engagement and experience. Mangalam Ganesh, CTO, Axis Securities, noted, “The core reason we have been talking about customer experience is that it can be a differentiating aspect that we bring. I do believe that being simple works best with customers. Engagement is an offshoot of so many small steps that we take—unified data, consistency in what we show to people.”
Yogesh Garg, Chief Digital Officer, Kotak Mahindra Bank, stressed the importance of customer-centricity. “If you get it right by the customer, everything falls in place. Making sure customers don’t believe that we are trying to oversell a solution they don’t want. Making sure we have what the customer needs and working back from there.”
Regulatory compliance and data privacy
With increased regulatory scrutiny, financial institutions are navigating evolving frameworks while ensuring seamless customer interactions. Ratan Kumar, CTO, Central Bank of India, highlighted the challenges of compliance. “Being a highly regulated entity, we have our own reservations and limitations in terms of club architecture. The recent regulatory acts also further affect the seamlessness of customer experience.”
Rajesh Choudhary, CTO, CSB Bank, underlined the significance of data protection. “With respect to data privacy, the regulatory framework enables us to a great deal in what needs to be done. Banks specifically have very clear guidance on how the data needs to be treated.”
AI in personalisation and cross-selling
Financial firms are increasingly leveraging AI to hyper-personalise services and enhance customer interactions. Nitin Kumar, Chief Analytics Officer, Ujjivan Small Finance Bank, highlighted the shift towards unstructured data. “We keep settling on structured data if you look at our pattern over the years. Using unstructured data that will help you hyper-personalise—that’s where ML and intelligence come into the picture.”
Ashutosh Mishra, GM & Head-Analytics, Bank of India, outlined AI’s role in cross-selling. “For cross-selling third-party projects and measuring the propensity of the customer, you can understand which ones are interested. Mobile authentication is also used based on customer behaviour.”
Nehal Shah, DyCTO, IDBI Bank, discussed predictive analytics in banking. “There is an expectation from customers to have a continuation of processes from the bank’s end while handling their concerns. Most banks use analytics when investing large amounts. If you have an account and you reach an age where you require a loan and you’re approaching another bank, your bank’s system gets alarmed and it notifies the bank on what kind of a customer you are, and products are then shaped as per your behaviour.”
Banks are also tapping into data monetisation strategies by leveraging AI-driven insights. Shivani Venkatesh, Head-Client Insights, RBL Bank, remarked, “The next frontier in the way we monetise data is to remain contextual. Today, with a lot of digital triggers or nudges, make it as contextual or relevant to make actual use of data.”
