Banks and lenders are turning customer data into faster decisions, personalised services and automated workflows as AI becomes a new source of competitive advantage.
Artificial intelligence is shifting from a back-office efficiency tool to a core source of competitive advantage in banking and financial services, as institutions face higher costs, tighter margins and a growing need to make faster, better-informed decisions. In an interview on the Analytics Insight Podcast, Nirav Prajapati, founder and chief executive of Ignosis, said the sector is moving away from a model that rewarded only rapid expansion and toward one that prizes sharper financial judgement, personalised service and more disciplined use of data.
That change matters because digital finance now generates vast volumes of information, much of it underused. According to the podcast discussion, AI can help banks and other lenders turn that data into practical outcomes, including tailored offers, automated internal processes and stronger lending decisions. The wider implication, as the conversation suggested, is that financial institutions are no longer competing simply on distribution or scale; they are increasingly competing on how intelligently they can interpret and act on customer data.
Ignosis presents itself as part of that transition. The company says it provides AI-powered Account Aggregator infrastructure for banks, non-banking financial companies and insurers, with tools aimed at income assessment, orchestration across multiple Account Aggregators, targeted customer prompts, collections and partnership lending. On its website, the company says it serves more than 150 clients and analyses more than 50 million profiles a month, positioning itself around the idea that real-time financial signals can be converted into automated decisions and workflows.
The broader policy and technology backdrop is especially important in India, where digital public infrastructure has become a foundation for new financial products and services. A KPMG report published in August described artificial intelligence as the next intelligence layer on top of that infrastructure, arguing that the country is moving from digital finance towards intelligent finance. The report said generative AI and agentic AI, meaning systems that can carry out tasks with limited human intervention but still under oversight, could improve fraud detection, credit assessment, customer service and risk management.
That view is echoed by other providers in the financial technology market. NXT Banking says its AI-driven payment platform uses machine learning to route transactions, detect fraud and improve settlement success rates, while KiyaAI describes its banking software as AI-native and designed for regulated institutions that want to automate processes and improve customer experiences. Aranidhi, meanwhile, markets a financial operating system built on India’s digital infrastructure that combines multiple official and market data sources to provide real-time views of net worth and cash flow. Taken together, these offerings point to a wider industry argument: in modern finance, intelligence is becoming as valuable as connectivity.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
