Financial services firms are expanding AI use beyond customer service into areas like risk compliance and credit underwriting, aided by regulatory guidance from the Reserve Bank of India. Analysts are divided on AI's impact on India's IT services industry, with some foreseeing revenue pressure from automation and others predicting market growth.
Separately, fintech lender Moneyview has filed draft papers for an initial public offering (IPO). Additionally, India's beauty and personal care market is projected to grow significantly, driven largely by Gen Z consumers.
The main topics covered are the adoption of AI in financial services, the potential impact of AI on the IT sector, Moneyview's IPO filing, and the growth of India's beauty and personal care market.
Business News›Tech›Newsletters›Morning Dispatch›The rise of AI in financial services; analysts split on IT’s future
The rise of AI in financial services; analysts split on IT’s future
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Happy Thursday! Financial services firms are increasingly adopting AI. This and more in today's ETtech Morning Dispatch.
Also in the letter:
■ Moneyview files for IPO
■ India's BPC market set to grow
■ Ford exec on AI strategy
Financial services firms are expanding their use of artificial intelligence (AI) beyond basic call centre automation into areas such as risk compliance, onboarding, and borrower lifecycle management.
Voice AI startups in action: Startups building multi-lingual voice systems are gaining traction with banks and non-banking lenders.
These tools effectively automate high-volume interactions while handling multiple Indian languages.
RBI's push for AI adoption: Early AI use in banking focused on contract centres and customer queries. Adoption accelerated after the Reserve Bank of India issued guidance last August, allowing banks to deploy AI across internal workflows.
Moving beyond customer service: Customer engagement remains the dominant use case today, but banks are testing AI for collections and credit underwriting as confidence grows.
“Currently, mostly standard processes are going to AI, but whenever there is an escalation or more complex tasks involved, humans are still frontending it,” said Navana Tech cofounder Raoul Nanavati.
Also Read: Fintechs want to bank on agentic commerce
Analysts are divided on how AI will affect India's IT services industry after Anthropic introduced plugins that automate routine work across finance, research, and HR.
Some expect revenue pressure as automation expands. Others argue that AI will widen the market for technology services.
Balancing views:
Domestic views:
Puneet Agarwal, CEO, Moneyview
Accel-backed fintech lender Moneyview has filed its draft red herring prospectus with Sebi, a step toward a public listing.
Issue details:
Use of funds: The company plans to deploy part of the proceeds into its lending operations.
Founded in 2014, Moneyview offers personal loans, investments, insurance, and digital payments.
Between April 2025 and December 2025, the company disbursed loans worth Rs 16,299 crore. Revenue during the period stood at Rs 2,373 crore, while net profit for the first nine months of the current fiscal reached Rs 209 crore.
India's beauty and personal care (BPC) market, valued at $27 billion in FY25, is projected to grow to $39 billion by FY30, according to a report by 1Lattice. Demand is being driven by young consumers, digital discovery and rising interest in self-care.
Driving the news:
Gen Z fuels spending: Gen Z consumers account for 45% of total BPC spending in India, reflecting the market's strong demographic tailwind.
Franziska Bell, chief data, AI and analytics officer, Ford Motor Company
Ford's AI chief on strategy: Ford Motor Company is integrating AI across functions — from the design studio to the factory floor — to turn 'manual hours' into 'pushes of a button,' all the while keeping human expertise firmly in the driver's seat, the 122-year-old automaker's chief data, AI, and analytics officer, Franziska Bell, told us.
Centre on social media content takedown deadlines: The government will not ease rules mandating faster content removal by social media platforms, prioritising the protection of citizens in the digital space, officials told us.
■ Can Big Tech deliver on Trump's pledge to shield consumers from higher energy bills? (FT)
■ An AI avatar is running to represent Indigenous voters in Colombia (Rest of World)
■ OpenClaw rips through China's tech and startup landscape (The Information)
Also in the letter:
■ Moneyview files for IPO
■ India's BPC market set to grow
■ Ford exec on AI strategy
With a little nudge from RBI, banks tap AI for bigger tasks
Financial services firms are expanding their use of artificial intelligence (AI) beyond basic call centre automation into areas such as risk compliance, onboarding, and borrower lifecycle management.
Voice AI startups in action: Startups building multi-lingual voice systems are gaining traction with banks and non-banking lenders.
- Sarvam and Navana are deploying voice bots for routine customer servicing.
- Info Edge Ventures-backed Gnani.ai works with enterprise clients, including HDFC Bank, IDFC First Bank, and Tata Motors, on voice-AI systems.
These tools effectively automate high-volume interactions while handling multiple Indian languages.
RBI's push for AI adoption: Early AI use in banking focused on contract centres and customer queries. Adoption accelerated after the Reserve Bank of India issued guidance last August, allowing banks to deploy AI across internal workflows.
Moving beyond customer service: Customer engagement remains the dominant use case today, but banks are testing AI for collections and credit underwriting as confidence grows.
“Currently, mostly standard processes are going to AI, but whenever there is an escalation or more complex tasks involved, humans are still frontending it,” said Navana Tech cofounder Raoul Nanavati.
Also Read: Fintechs want to bank on agentic commerce
Brokerages split on future of IT as AI automates nuts and bolts
Analysts are divided on how AI will affect India's IT services industry after Anthropic introduced plugins that automate routine work across finance, research, and HR.
Some expect revenue pressure as automation expands. Others argue that AI will widen the market for technology services.
Balancing views:
- JP Morgan remained bullish on the long-term impact, describing AI as another productivity tool.
- “AI will be another tool to address more work with the same budget, like offshore labour, enterprise software, and cloud have been in the past. IT services companies remain the plumbers in the tech world,” the bank said.
- Jefferies took a more cautious view, warning of “sharp revenue deflation” in managed services, which account for as much as 45% of revenue for major IT firms.
Domestic views:
- Motilal Oswal estimated 12-15% of sector revenue could face AI-driven disruption.
- Kotak Institutional Equities anticipated steady demand in the near term but forecast longer-term margin pressure.
- HSBC argued that traditional software vendors, rather than AI startups, may ultimately benefit.
Fintech lender Moneyview files DRHP with Sebi for IPO, seeks to raise Rs 1,500 crore via fresh issue
Puneet Agarwal, CEO, Moneyview
Accel-backed fintech lender Moneyview has filed its draft red herring prospectus with Sebi, a step toward a public listing.
Issue details:
- Fresh issue: Rs 1,500 crore
- Offer for sale: 136 million equity shares
- Promoters Sanjay and Puneet Agarwal, along with existing investors Accel, Apis Partners and Ribbit Capital, will sell shares in the offer.
Use of funds: The company plans to deploy part of the proceeds into its lending operations.
- Rs 450 crore will be invested in Moneyview's non-banking finance arm (WFPL).
- Rs 650 crore will support loan disbursements under its first-loss default guarantee (FLDG) model with partner lenders.
Founded in 2014, Moneyview offers personal loans, investments, insurance, and digital payments.
Between April 2025 and December 2025, the company disbursed loans worth Rs 16,299 crore. Revenue during the period stood at Rs 2,373 crore, while net profit for the first nine months of the current fiscal reached Rs 209 crore.
India's beauty and personal care market set to grow to $39 billion in FY30: Report
India's beauty and personal care (BPC) market, valued at $27 billion in FY25, is projected to grow to $39 billion by FY30, according to a report by 1Lattice. Demand is being driven by young consumers, digital discovery and rising interest in self-care.
Driving the news:
- Online BPC sales have more than doubled since 2020, with about 75% of shoppers now preferring ecommerce platforms.
- Nykaa leads the segment, followed by Amazon and Myntra.
- Quick commerce is gaining ground, accounting for 14% of online BPC sales today and expected to reach 30% by 2030, driven by rapid-delivery offerings such as Nykaa Now.
Gen Z fuels spending: Gen Z consumers account for 45% of total BPC spending in India, reflecting the market's strong demographic tailwind.
Other Top Stories By Our Reporters
Franziska Bell, chief data, AI and analytics officer, Ford Motor Company
Ford's AI chief on strategy: Ford Motor Company is integrating AI across functions — from the design studio to the factory floor — to turn 'manual hours' into 'pushes of a button,' all the while keeping human expertise firmly in the driver's seat, the 122-year-old automaker's chief data, AI, and analytics officer, Franziska Bell, told us.
Centre on social media content takedown deadlines: The government will not ease rules mandating faster content removal by social media platforms, prioritising the protection of citizens in the digital space, officials told us.
Global Picks We Are Reading
■ Can Big Tech deliver on Trump's pledge to shield consumers from higher energy bills? (FT)
■ An AI avatar is running to represent Indigenous voters in Colombia (Rest of World)
■ OpenClaw rips through China's tech and startup landscape (The Information)
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