The world economic order is being reshaped by geopolitical fragmentation, AI, cyber risk and compounding crises. The global landscape of 2050 could look fundamentally different from today, with wide variation in growth, productivity and trade integration across possible scenarios.
Indian banking enters this era from a position of strength with higher returns and bank asset growth momentum. Yet a decade of digitization and rising technology spend has not fully translated into lower costs or efficient operations. The next phase must move beyond automating existing processes to reimagining banking around AI/ GenAI.
Developed in association with FICCI and IBA and launched at FIBAC 2026, this report examines how AI/ GenAI is paramount for banks to finance growth and mitigate upcoming challenges by reshaping three imperatives:
- Democratize credit affordability: Credit access has expanded rapidly, but affordability remains constrained by high operating costs. Agent-led credit journeys can simplify underwriting, reduce turnaround times, and lower the cost of serving borrowers. Collections must also evolve toward personalized debt resolution.
- Unlock productivity: Productivity has begun to improve, but operating expenses continue to outpace income as many banking journeys remain highly manual. Banks must redesign workflows around AI/ GenAI, not merely by structured automation but with complex execution through agents and augmented intelligence.
- Building risk muscle beyond credit: Fraud, operational resilience, cybersecurity, and climate risk are adding to traditional risks. Banks need an AI-enabled view of resilience that identifies dependencies, detects threats at machine speed, and supports faster, more informed decision making.
AI/ GenAI is therefore set to become the enabler of growth, workforce productivity, and resilience. Capturing its full potential will require coordinated action by banks, regulators, and government on talent, governance, infrastructure, and responsible deployment.
