Indian banks must enhance their customer service to compete with modern fintech companies, said Jay Kotak, Co-head of Kotak 811, at the Global Investors Meet, Invest Karnataka 2025 in Bengaluru on February 12.
Banks Lag Behind Fintech in Customer Service
Kotak pointed out that the banking system lacks empathy towards customers and needs significant improvements. “We are not empathetic enough towards our customers. We need to do much better in terms of telecalling, brand experience, and the quality of our mobile apps. We are light years behind where we need to be and where fintech competitors are today,” he said.
He also highlighted the gap between India and the U.S. in financial services, citing a shortage of both human and financial capital. “We need to do a better job of attracting top talent in India. In comparison, we still have a lot to catch up on,” he added.
Role of AI in Financial Services
The panel discussion, titled “Leading the Charge: Young Innovators Shaping India’s Future,” was moderated by Nikhil Kamath, co-founder of Zerodha. Other panelists included Parth Jindal, Managing Director of JSW Cement, and Suzannah Muthoot, Executive Director of Muthoot Housing Finance Company.
A major focus of the discussion was the role of Artificial Intelligence (AI) in financial services, particularly in underwriting and customer engagement.
Suzannah Muthoot explained how AI and QR-code-based underwriting are transforming rural lending. “Technology is playing a crucial role in underwriting customers. In areas where traditional underwriting was not possible, QR code-based technology is making a difference. This is helping financial services reach rural areas and serve more customers,” she said.
She also noted that AI helps approve loans for customers who might have otherwise been rejected. “AI-driven underwriting uses past data to assess creditworthiness. Where others might reject an applicant, our AI-based analysis allows us to support those customers.” Additionally, AI is improving vernacular communication, making financial services more accessible.
Concerns Over AI and Job Creation
Parth Jindal expressed concerns about AI’s impact on employment in India. “For India, AI is a dangerous tool. When we talk about AI taking over jobs, I don’t think it will benefit our country the way it does for others,” he said.
Government Support for Startups in Karnataka
Karnataka has emerged as a major startup hub, but State Labour Minister Santhosh Lad revealed that out of 1.5 lakh startups, only 10% have been successful, with just 150-200 achieving unicorn status.
To support the startup ecosystem, Lad proposed a fund of funds where corporates and the government collaborate to invest in startups. “I’m proposing that corporates and the government come together to invest in startups through a fund of funds, helping them grow in India,” he said.
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