New Delhi, Aug 11: State Bank of India Chairman C.S. Setty has called for wider use of artificial intelligence in banking, with a focus on extending the benefits of technology to farmers, rural communities and small businesses.
Speaking at a FICCI-Indian Banks’ Association event, Setty said AI has the potential to improve access to financial services and make lending more efficient, particularly for customers who may have limited conventional financial records.
Banks are increasingly using AI for customer services, risk assessment, fraud monitoring and credit-related processes. The focus is now shifting towards applying these technologies in sectors such as agriculture and small businesses.
In agriculture, technologies such as satellite imagery and digital data can help banks assess crop conditions and credit risks more accurately. Better information could support more informed lending decisions and improve access to formal credit for farmers.
AI can also help banks understand the financial position of small businesses and MSMEs by analysing a wider range of business information. This could support faster credit assessment and improve access to finance for enterprises that may not have extensive financial histories or traditional collateral.
The wider adoption of AI is expected to make banking services more accessible, efficient and responsive, while reducing processing time and improving risk management.
However, scaling AI solutions across rural India will require reliable digital infrastructure, quality data, skilled personnel and strong cybersecurity systems. Banks will also need to ensure responsible use of customer information and maintain trust as technology becomes more deeply integrated into financial services.
The expansion of AI-led banking can support broader financial inclusion by bringing formal banking and credit services closer to underserved communities.
For farmers, easier access to finance can support agricultural investment and productivity, while timely credit for small businesses can help them expand, invest in technology and create employment.
The initiative aligns with India’s broader development goals and the vision of building a technology-driven and inclusive economy by 2047.
The banking sector’s growing focus on AI is therefore expected to extend beyond digital convenience, with technology increasingly being used to strengthen financial inclusion, improve lending and support economic opportunities across both urban and rural India.