Indian fintech startups are using generative AI to cut costs and boost efficiency. The results speak for themselves.
Stock-broking platform Dhan reduced support costs by nearly 30%. Payment company Easebuzz cut response times from 20 minutes to seconds. Banking tech firm Zeta now processes 208 million credit accounts in 40 minutes.
These aren’t isolated wins. They represent a broader shift across India’s fintech sector.
Why It Matters Now
Tiffany Bloomquist runs AWS’s startup business across Asia-Pacific. She visits India almost every quarter now. The reason is clear: generative AI has become the fastest route to better customer experience.
Three factors drive this surge in Indian fintech. First, the government’s India Stack provides ready-made digital infrastructure. Second, India now has over 240 generative AI startups, up from just 66 last year. Third, AWS offers up to $1 million in credits through its AWS accelerator program.
Seven Indian firms already joined the current cohort.
How It Solves Key Problems
Dhan serves three million traders. The company was drowning in know-your-customer checks. They trained a language model on their own policy documents. Now it answers 25% of queries automatically. Average wait times dropped by half.
Easebuzz faced constant merchant calls about integration problems. Their new assistant ERA reads messages and compares them with technical manuals. It suggests step-by-step fixes in real time. Redundant tickets dropped 80% thanks to startup automation.
Zeta handles millions of daily transactions. Every night, merchants queue transactions for processing. Their AI-powered engine predicts heavy bursts. It reconciles accounts in 40 minutes versus hours before. This saved them a nine-figure hardware budget.
Yubi uses large language models for credit scoring. The system feeds on public filings and bank statements. Risk models update in hours instead of days. Borrowers wait one-third less time for funding offers.
Strategic Advantage for Indian Businesses
The common approach is simple. Companies distill their knowledge into AI models. They surface it through chat interfaces. They run it on servers that scale only when needed.
“We used to automate servers,” Bloomquist said. “Now we’re automating compliance, advice, and trust. Founders who seize that shift will shape the next decade of finance.”
This creates real competitive advantages. Companies reduce operational costs. They improve response times. They handle larger volumes without proportional staff increases.
What Business Leaders Should Know
Nandan Nilekani, Co-Founder and Chairman of Infosys, offers perspective on AI implementation challenges. “Everybody is talking about AI, so the whole thing is much more hyperventilating, but fundamentally, the challenges of implementation are the same, like anywhere else, and we have to make sure habits change. You have to change the workflow in enterprises or in government, so that AI is part of it.”
He emphasizes the effort required: “AI doesn’t mean it’s going to be easier to do. It’s going to take the same effort, if not more effort. Because you’re trusting the machine to give decisions more responsibility to make sure that it works.”
Market Impact in India
Investors are taking notice. Significant funding flows into AI-driven fintech ventures. The ability to harness AI effectively determines future success in Indian fintech.
Competition in fintech will intensify. Companies must refine their AI adoption strategies. Those who integrate AI into core operations gain sustainable advantages.
Nilekani also notes the opportunities and risks: “While embracing AI will bring a goldmine of opportunities, it will not be entirely without some foreseeable risks. Regulatory variances across regions will need to be incorporated into one’s strategy.”
Risks and Considerations
Implementing generative AI requires workflow changes. Companies must train staff on new systems. They need to ensure AI decisions remain trustworthy.
Regulatory compliance across different regions adds complexity. Early adopters face integration challenges. Success requires sustained effort and strategic thinking.
But the evidence from Indian fintech proves the potential. Companies that act now position themselves for the next decade of growth.