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AI Reshapes India's Fintech, Boosts Inclusion & Fights Fraud

AI-led innovation is reshaping India's financial services by driving efficiency and expanding market access, according to a CII session. UIDAI officials highlighted AI's critical role in managing the massive scale of Aadhaar authentications and strengthening fraud risk management. Industry leaders from Hero FinCorp, PolicyBazaar, and True Balance detailed how AI enhances operations, risk assessment, and customer-centric solutions. The discussions also addressed the need for evolving governance frameworks to balance innovation with risks like AI concentration and supply chain dependencies.

Key Points: AI Transforms India's Fintech Ecosystem: CII Report

  • AI drives financial inclusion
  • Strengthens fraud detection in Aadhaar
  • Enhances operational efficiency
  • Requires responsible governance
3 min read

AI in Fintech reshaping India's financial services ecosystem with Intelligence, Automation: CII

AI is driving efficiency, inclusion, and fraud detection in India's financial services, with UIDAI leveraging it for Aadhaar security, says CII session.

"Aadhaar does nine crore authentications every day... robust fraud risk management becomes essential. - Vivek Chandra Verma"

New Delhi, February 17

AI-led innovation is reshaping India's financial services ecosystem by driving efficiency, adopting intelligent technology, and deepening market penetration. According the Confederation of Indian Industry, artificial intelligence is accelerating the country's fintech transformation and expanding access to previously underserved markets.

The findings were highlighted during a session titled "AI in Fintech: Transforming the Sector with Intelligence and Automation," organised by the CII on the sidelines of the India AI Impact Summit 2026. Industry leaders and government officials noted that AI is unlocking new frontiers in financial inclusion at a significant scale.

Vivek Chandra Verma, Deputy Director General, Unique Identification Authority of India (UIDAI), stated that the authority is strengthening its unique identity data management system to enable customer-centric innovation while detecting risks of fraud.

"Aadhaar does nine crore authentications every day. With almost 100% adults on Aadhaar and high authentication transaction volumes across sectors, robust fraud risk management becomes essential," Verma said. He added that AI, advanced analytics, and models are already playing a key role in strengthening enrolment, updation, and authentication processes at UIDAI. Verma remarked that the Aadhaar tech stack will leverage future AI models for "ever-improving and more robust systems."

The session, moderated by Atul Gupta, Partner and Head of Digital Trust, Cyber and Tech Risk at KPMG, examined how the digital ecosystem can build on the success of financial inclusion.

Sajin Mangalathu, COO, CFO, and Chief Information Officer at Hero FinCorp, stated that companies are leveraging AI and digital capabilities to enhance operational efficiency and strengthen risk assessment frameworks.

Adelia Castelino, Founder and Managing Director of InSolutions Global, noted that technological advancements related to KYC and UPI have enabled the development of solutions that were not feasible earlier.

Soumyajit Ghosh, Chief Operating Officer at True Balance, explained that AI-enabled features are creating new opportunities to reach underserved market segments.

Saurabh Tiwari, Chief Technology Officer at PolicyBazaar, shared that technology development in the country allowed his firm to adopt customer-centric solutions and scale services.

Abhishek Lahiri, Vice President of Government Affairs and Public Policy for South Asia at Mastercard, said AI and technology are helping address risks faced by both service providers and users.

The discussions also addressed AI concentration risks, supply chain dependencies, and the balance between regulation and innovation. Participants examined the evolving governance frameworks required to support responsible AI adoption.

The session took place at Hotel Le Meridien in New Delhi on February 16, 2026, and included a diverse group of stakeholders from across the financial sector.

- ANI

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Reader Comments

A
Arjun K
Good to see CII focusing on this. The point about using AI to strengthen Aadhaar against fraud is crucial. With so many authentications daily, we need robust systems. My only concern is data privacy - hope the governance frameworks they're discussing are strong and transparent.
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Rohit P
As someone working in a tier-2 city bank, I can confirm AI is already helping us assess loan applications for small shopkeepers and farmers much faster. It's not just about metro cities; the real impact is in reaching the last mile. Automation is saving us hours of manual work.
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Sarah B
Interesting read. The balance between innovation and regulation is key. While AI can drive efficiency, we must be cautious of over-reliance and ensure there's a human in the loop, especially for critical financial decisions. The mention of supply chain dependencies is a valid point too.
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Vikram M
Hope this leads to simpler and more accessible financial products for the common man. Sometimes all these tech advancements feel like they only benefit urban, English-speaking users. The true test will be if my mother in her 60s can use these AI-enabled services easily.
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Karthik V
The scale is mind-boggling - 9 crore Aadhaar authentications daily! AI managing that volume while catching fraud is impressive. This public-private collaboration model seems to be working well for India's digital infrastructure. Jai Hind!

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