Technology changes BFSI sector

Firms in the industry are undergoing a major digital transformation, with technologies - Cloud, Al, GenAI, RPA, and blockchain - leading the way, says a Business Standard-Everest Group report

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The Indian Banking, Financial Services, and Insurance (BFSI) industry has shown strong resilience amid global headwinds and achieved impressive growth. Credit growth has remained robust, and nonperforming assets (NPAs) have reduced to multi-year lows.

This progress results from significant technology investments to meet rising demand and support financial inclusion initiatives. BFSI firms across India are undergoing a major digital transformation, with technologies such as Cloud, AI, GenAI, Robotic Process Automation (RPA), and Blockchain leading the way. These technologies are reshaping the industry by enhancing customer experiences, streamlining operations, and ensuring regulatory compliance.

The surge in digital banking platforms and mobile apps has revolutionised customer interactions, delivering unprecedented convenience and accessibility. This article shares the findings of a survey-based research project that Everest Group conducted to understand the technical advances in the Indian BFSI sector.

The report provides an overview of technology trends in the Indian BFSI market; the regulatory landscape and its impact on BFSI firms' technology investments; adoption maturity and drivers for various technology themes; and a deeper look at challenges and obstacles that Indian BFSI firms face as they expand their technology estate.

Enterprises looking to gain insights into current technology demands, future investment priorities, and the challenges facing Indian BFSI firms will benefit from this report.

Industry overview

India's banking industry is experiencing remarkable growth driven by economic fundamentals, rising demand, and technological advancements. In FY24, total deposits surpassed ₹200 trillion, with a 13 per cent year-on-year (Y-o-Y) growth, and net profits exceeded ₹3 trillion, underscoring the sector's resilience.