Bajaj Fin aims to double productivity with AI – Newz9

MUMBAI: Through it AI initiative , FinAIa key pillar of Bajaj Finance 3.0 – the corporate aims to triple lead conversion chargesdouble again-workplace productivity, and increase entrance-line efficiency by 1.5 instances.
The firm’s AI-driven transformation will combine with its current cloud and digital infrastructure, mentioned Rajeev Jain, managing director of Bajaj Finance. “We’ve always been early adopters of technology,” he mentioned, including, “Technology drives revenue growth, reduces costs, and mitigates operational risks. AI will take this a step further by improving customer engagement, lowering operating expenses, and increasing profitability. .”
Over the previous yr, the corporate has examined over 30 AI use instances to validate its effectiveness. “Ninety percent of our computers operate on Microsoft Azure, and our data lake supports hundreds of thousands of variables,” he mentioned. “These foundations make AI a logical next step.”
One vital use case for AI at Bajaj Finance is conversational AI. Jain defined, “Currently, SMS communication is static. With AI, messages will include interactive links. For instance, if a customer clicks a link, they can specify preferences like a smartphone instead of a smart TV. AI will then provide options, specifications , and prices, even connecting them to a dealer… Over the next four years, we aim to reduce operating cost-to-net-interest-margin ratio by 100 basis points.”
Jain emphasised that AI will complement current methods somewhat than exchange them. “AI will integrate into our current cloud, data, and digital infrastructure. However, physical processes like KYC and AML compliance will remain essential due to regulatory requirements,” he mentioned.
Discussing the broader lending surroundings, Jain addressed considerations round unsecured loans. “Unsecured loans have grown rapidly after Covid, prompting necessary regulatory measures. For us, our product mix has remained consistent over the past decade,” he mentioned. He added that current credit score price will increase are a return to pre-Covid norms. “If credit costs were 195 basis points pre-Covid, they went down to 153 last year, and are now at 205-210… it’s not a dramatic shift,” he mentioned.