Cloud, AI-ML top emerging techs adopted by Indian banks, reveals RBI survey

A survey conducted by the Reserve Bank of India (RBI) has revealed that Cloud computing and artificial intelligence/machine learning (AI/ML) are the two most widely adopted emerging technologies among Indian banks. 

The survey, conducted in November 2024, included responses from 12 state-owned banks and 19 private sector banks to assess the adoption of emerging technologies and the associated risks to the financial sector. 

According to the RBI, AI/ML is primarily being implemented by banks for customer service, sales and marketing, risk management, and know your customer (KYC) processes. Meanwhile, cloud computing is helping to reduce the cost of financial services by providing easier access to infrastructure and enabling economies of scale.

 

RBI in the financial stability report highlighted that the banks are relying on outsourcing for emerging technologies, likely due to IT expertise and cost efficiency, with internal resources more focused on core competencies. Importantly, over 80 per cent of the respondent banks have fully or partially outsourced at least one emerging technology.