Last Updated:
AI at core operations, rise of alternate finance, and push for regulatory simplification are set to define India’s BFSI sector, says Dun & Bradstreet report.
The report said AI is increasingly embedded in high-impact areas such as decision-making, risk assessment and customer engagement.
Artificial intelligence (AI) moving to the core of operations, the rise of alternate finance like REITs, and a growing call for regulatory simplification are emerging as defining themes for India’s BFSI sector, according to new research by Dun & Bradstreet.
Based exclusively on Dun & Bradstreet Research, the study captures insights from MDs, CEOs, CXOs and senior functional leaders across banking, NBFCs, insurance, asset management and fintech firms. It reflects both strategic and execution-level perspectives on the next phase of growth in India’s financial services ecosystem.
AI Moves From Support Function To Core Capability
One of the most significant structural shifts highlighted in the research is the rapid transition of AI from a supplementary tool to a core operating layer within BFSI institutions.
The findings show that 68% of BFSI leaders believe fraud detection and transaction monitoring will see the strongest AI-led growth. Another 56% expect significant adoption of AI in credit underwriting and risk modelling, while 49% foresee rapid expansion of AI-driven customer service and conversational platforms.
The data suggests that AI is no longer limited to pilot programmes or back-end automation. Instead, it is increasingly embedded in high-impact areas such as decision-making, risk assessment and customer engagement.
Scaling AI Hinges On Governance And Data Foundations
Despite strong intent, BFSI leaders acknowledge that scaling AI models across institutions remains constrained by structural and governance-related challenges.
The research flags data quality, cybersecurity and privacy risks, regulatory clarity, availability of skilled talent and deployment costs as critical bottlenecks. Leaders indicate that unless these foundational elements are addressed, AI may struggle to move from targeted applications to enterprise-wide trust and adoption.
The emphasis, therefore, is shifting from experimentation to responsible and scalable deployment.
Rise Of Alternate Finance And New Investor Classes
The research also points to a broader behavioural shift in India’s financial ecosystem — from a nation of savers to a generation of wealth builders.
Around 65% of respondents believe that expanding participation by younger, digitally engaged and financially confident investors will redefine India’s wealth management landscape over the next five years.
Alternate finance is emerging as a key driver of product innovation. As many as 83% of leaders believe Real Estate Investment Trusts (REITs) will expand beyond commercial real estate into newer asset classes such as data centres. This reflects growing appetite for diversified and structured investment products, supported by digital advisory platforms.
The findings suggest that alternate assets and technology-enabled advisory models will increasingly shape capital allocation patterns in the coming years.
A Call For Structural Reset In BFSI
As India’s BFSI ecosystem grows in size and complexity, the research highlights a parallel demand for regulatory and structural reforms.
About 76% of leaders believe unified and simplified regulations are critical for sustained BFSI growth. Meanwhile, 86% say digital platforms and fractional investment models will deepen participation in capital markets. Additionally, 57% identify tax and regulatory simplification for listings as a key enabler of market depth.
These responses indicate that while innovation is accelerating, market participants see regulatory coherence and ease of participation as equally important to unlock the next growth phase.
Why This Matters Now
The research underscores that India’s BFSI transformation is entering a more mature phase. AI, alternate finance and digital infrastructure are no longer peripheral themes — they are becoming structural pillars of the ecosystem.
At the same time, the conversation is evolving beyond adoption metrics to deeper questions around governance, trust, regulatory readiness and systemic resilience. How institutions balance innovation with structural preparedness may determine the trajectory of India’s financial services sector in the years ahead.
Click here to add News18 as your preferred news source on Google.
Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
February 25, 2026, 17:18 IST
Read More