AI could transform half of Indian banking jobs: Report
A fresh report from Boston Consulting Group reveals that artificial intelligence (AI) could reshape 35-50% of jobs in Indian banks, according to Ruchin Goyal, senior partner at BCG.
This push for AI comes as banks face just a 1% productivity gain, even though IT spending has jumped five times over the past decade.
Tiny productivity gain from IT spend
Despite pouring money into tech—IT expenses are set to keep growing fast—Indian banks have only managed a tiny 1% boost in productivity.
Ruchin Goyal, senior partner at BCG, points out that AI might be the key to breaking the sticky cost structures and making banking more efficient.
IT costs still lower than global average
Even with all this investment, Indian banks' IT costs are still lower than what's typical worldwide.
That gap is driving even more upgrades. But progress is slow, underlining why smarter tech like AI is needed.
Need for faster bank credit growth
The report also warns that for India to hit its big 2047 goals, bank credit needs to grow much faster than it does now—credit growth slipped to just 12% this year (FY25).
Plus, fewer new people are getting access to credit each year, and only about a third of adults have any credit history at all—making financial inclusion a real challenge going forward.