The Future of AI in Lending: How GenAI and Data Are Redefining Credit

Srikanth Appana, CTO at Bajaj Auto Credit shares how artificial intelligence (AI) is fundamentally reshaping the financial services sector.

- By Srikanth Appana | [e-mail]

A IN LENDING, where precision, speed, and risk management are paramount, Al is not just a technological tool; it is a revolutionary innovation force transforming how credit is evaluated, delivered, and managed. As generative Al, advanced machine learning models, and strategic data utilization become standard across banks and fintechs, the future of lending is evolving toward increased personalization, efficiency, fairness, and scale.

The Evolution of Al in Lending

For decades, lenders depended on traditional credit models like FICO, which assessed creditworthiness through limited metrics such as income, employment, and repayment history. While effective, these models often excluded people with “thin files” — including young borrowers, gig workers, and immigrants.

Machine learning began to close this gap by analyzing broader data sources — spending habits, digital payments, and social behavior — to uncover new credit insights. As lending platforms digitize, richer datasets enable smarter risk modeling and segmentation. Now, the industry is moving into its next phase, powered by generative Al and advanced data strategies.

Generative Al: Redefining Customer Experience and Efficiency

Generative Al is transforming how lenders communicate, assess risk, and innovate.