AI-DRIVEN TRANSFORMATION IN INDIAN BANKING: POST-COVID GROWTH AND EMERGING TRENDS
Keywords:
Artificial Intelligence, Indian Banking, BFSI, Post-COVID, Fraud Detection, FinTech, Digital Transformation, Machine Learning, RBI, GenAIAbstract
Following the COVID-19 pandemic, digital transformation accelerated rapidly, positioning India’s banking sector at the forefront of an Artificial Intelligence (AI) revolution. This study examines AI’s impact on fraud detection, customer service, credit scoring, back-office operations, and risk management using data from reports, bank filings, and official statistics. The AI market in India’s BFSI sector reached $739 million in 2022 and is projected to grow to $8 billion by 2033 (IMARC, 2024). RBI data indicates a sharp rise in AI adoption, especially among private banks. Empirical evidence shows reduced costs, faster loan processing, increased digital transactions, and lower fraud rates. The study concludes with strategic recommendations addressing challenges such as data privacy, bias, and workforce transitions in the banking sector.
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