Pune: AI-driven loan processing is increasingly becoming central to how financial services companies scale repeat lending while maintaining customer trust, according to Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv Limited, speaking during a fireside chat moderated by Neil Borate at the Pune Public Policy Festival (PPPF) 2026.
Highlighting a live, operational use case, Sanjiv Bajaj explained that when an existing customer seeks another loan – through an in-app chat, email, or even a missed call – an AI system now initiates a callback and completes the engagement end-to-end.
The AI assistant transparently introduces itself as an AI, communicates in English, Hindi, or Hinglish, and is expected to expand to nearly ten languages by the end of the year.
AI-Driven Loan Processing Moves Beyond Pilots to Real Scale
Elaborating on the maturity of AI-driven loan processing, Sanjiv Bajaj underscored that this is not an experimental initiative but a production-ready system already delivering measurable outcomes.
The AI assistant discusses loan requirements, explains terms, negotiates where appropriate, and completes the transaction with the customer, while human teams continue to supervise conversations to ensure quality and compliance.
Currently, the system is closing around 25,000 loans every month on an end-to-end basis, translating into nearly ₹100 crore in loan value. Sanjiv Bajaj noted that such scale is only possible when AI is deeply integrated into core operations rather than deployed as a surface-level efficiency tool.
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AI-Driven Loan Processing Blends Automation with Human Oversight
During the discussion, Sanjiv Bajaj emphasized that responsible deployment remains critical even as automation increases. While AI handles conversations and execution, human oversight continues to play an important role, particularly as the technology evolves.
According to him, this balance ensures that speed and efficiency do not come at the cost of customer experience or governance.
He also pointed out that multilingual capability is essential in a diverse market like India, where customer comfort and clarity directly impact adoption and trust. The expansion of AI-led interactions into more languages is therefore a natural extension of building inclusive digital financial services.
Digital Public Infrastructure Democratizes Access to Finance
Bajaj underscored that technology has fundamentally changed the simple core model of banking – collecting deposits, lending money, and earning a spread – by making access universal. Earlier, while large corporates could easily raise capital, small businesses faced repeated branch visits, paperwork, and long waiting periods, often without certainty of approval.
Today, banking, credit, and insurance are available through mobile applications, mirroring the on-demand experience of ordering food or groceries. India now has nearly 1.4 billion Aadhaar identities, close to a billion bank accounts, and processes over 600 million digital transactions every day, driven largely by UPI—an indigenous, government-led payment system.
Unlike many global systems built by private companies that charge transaction fees, India’s digital infrastructure was created as a public good at little or no cost, enabling private enterprises to build scalable business models on top of it.
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Account Aggregators Shift Power from Banks to Customers
Discussing data-led innovation, Bajaj highlighted the account aggregator framework as a critical next step after digital identity and payments. The framework allows individuals to securely share their financial data – such as bank statements – with lenders of their choice, entirely with customer consent.
This enables lenders to make more accurate credit assessments and offer competitively priced loans, effectively shifting bargaining power from banks to customers. Bajaj noted that Bajaj Finance has been among the largest users of the framework, though many institutions are yet to fully adopt it.
Similar principles are being extended through platforms such as ONDC for commerce and OCEN for MSME credit, allowing businesses and individuals to access a wider pool of lenders and marketplaces without being locked into a single institution.
Insurance, Wealth Creation, and Long-Term Opportunity
Bajaj pointed out that insurance penetration in India remains low primarily due to affordability and income levels. Insurance is often purchased only when mandatory, while voluntary adoption rises as disposable incomes grow.
As India becomes wealthier, participation in insurance and mutual funds is already increasing, with monthly mutual fund inflows rising sharply over the past five years.
He emphasised that insurance is not just about protection but also long-term financial security, and the opportunity for growth in financial services over the next two decades remains significant.
