Make no mistake—India is a growth story. While the IMF projects that global GDP will grow by 3.2% in 2025, India is expected to grow at 6.0%, or nearly double the rate. Recently, the World Economic Forum opined that India would account for 20% of global growth in the near future. The growth has also translated into banking and credit growth. Between 2020 and 24, banking credit grew by 11.8% per annum.

In this context, an expert may argue that the Indian banks are on the right growth trajectory and investing appropriately in technology. A bank should not alter its technology strategy given the appropriate technology investment. I would argue to the contrary that this is the time for Indian banks to slightly modify their technology investment strategy and a time to now realize investment dividends.

In my discussions with senior Indian bankers, many often state that IT is now the most significant banking risk. Credit is healthy, and there is a growth trajectory, but they want to plan for system resilience to support growth. These discussions focus on multiple facets, such as do we have the right core, whether we are investing in the right AI solutions, whether our processes are robust, and how we socialize the benefits to build a more inclusive financial services ecosystem. The graphs below provide a view of the Indian banking priorities and challenges.

The results do not vary much with the rest of the region and are consistent on multiple fronts. These are (i) legacy infrastructure, (ii) the business is now expecting a much shorter project cycle, and (iii) the CIO needs to justify the IT budget.

In this context, we are proposing a strategy that.

• Builds agility through accelerated AI deployments and aims to ready the infrastructure for resiliency at scale.

• This builds for a compliant and explainable deployment of algorithmic approaches. Many of the business priorities, such as customer experience enhancements and underwriting, require a new algorithmic approach. These need to be ethically implemented to provide defendable solutions.

• Increase the inclusion through digital payments and currencies.

• We are also proposing a revised review of risk technology. Indian banks, in their growth trajectory, are also being exposed to financial crime. The crime could result from either a malicious external attempt to fraud or compromise the network or an internal attempt to misuse entitlements for personal wealth.

These, and many other topics, will be covered in the India AFSC chapter. Join me and my team as we delve deep into some of these topics.

As India’s economic trajectory for 2025 – 26 unfolds, as per the World Economic Forum, India will be 6% of the overall global growth. Besides, India Ratings & Research forecasts a 6.6% growth rate, while ICRA projects a slightly lower 6.5%, citing global uncertainties as a dampening factor. The Reserve Bank of India (RBI) corroborates the 6.6% growth outlook for FY 2024 – 25. However, inflation looms large as a significant disruptor at 4.8%, affecting consumer spending and urban demand recovery.

The inflation challenge and its ripple effect

Inflation significantly impacts insurance purchase behavior in India by eroding purchasing power and reducing disposable income for discretionary spending like insurance. With inflation above the ideal 4-4.5% range as per India Ratings & Research, many consumers are downgrading or canceling policies. Rising premiums, subdued manufacturing, weaker electricity demand, and agricultural output fluctuations compound the issue, forcing insurers to navigate reduced demand while managing rising costs. Innovative pricing and flexible coverage options are essential to sustain consumer interest and demonstrate the value of insurance in uncertain times.

Shifting consumer priorities in insurance

Despite these economic challenges, the Indian insurance sector is poised for transformation, driven by shifting consumer priorities and technological advancements. Inflationary pressures, coupled with global uncertainties, are prompting consumers to reassess their spending habits. For instance, life insurance, which is traditionally viewed as a discretionary expense, is gradually becoming a necessity for many households. This shift is fueled by an increased awareness of risk mitigation, health security, and financial planning. However, premium cost, type of insurers offering the policy, type of products offered etc., are a major factor that may negatively influence this trend. For example, as per IRDAI in the financial year 2023, the Life Insurance Corporation (LIC) of India issued over 20.4 million new individual policies as opposed to 21.72 million new policies in the prior year. In comparison, private insurers issued around 8 million policies in 2023 as opposed to 7.39 million policies in the prior year.

The rise of digital insurance: Digital adoption is reshaping the Indian financial services landscape, and the insurance sector is no exception. The expansion of digital banking and rising credit demand are creating opportunities for insurers to tap into new customer segments. Fintech companies are playing a pivotal role in integrating consumers into the formal financial ecosystem, offering innovative insurance solutions tailored to specific needs. Digital platforms enable streamlined processes, from policy purchases to claims settlements, enhancing customer convenience and trust.

IT budget trends in the insurance sector: The changing priorities in the insurance industry are also reflected in IT budget allocations for 2024 compared to 2023 as per IDC AP insurance DX survey 2024. A significant majority of insurers (90.0%) reported an increase in their IT budgets of under 10%, highlighting cautious but consistent investment in technology. These figures indicate a steady but measured focus on technological upgrades, driven by the need for digital transformation and operational efficiency.

Trends Shaping Consumer Spending on Insurance in 2025: Several trends are set to influence insurance consumption in 2025:

• Health and wellness focused policies: The post-pandemic era has heightened consumer awareness around health and wellness. Demand for comprehensive health insurance plans, including mental health and wellness benefits, is on the rise.

• Usage – based and telematics driven insurance: Advancements in telematics and AI are enabling insurers to offer usage-based products, particularly in motor and travel insurance, aligning premiums with consumer behavior for greater personalization and cost-effectiveness. Companies like TATA AIG, Bajaj Allianz, and Edelweiss General Insurance are leading this shift in India.

• Climate risk coverage: Weather variability and agricultural output fluctuations have spurred interest in climate-related insurance products. Crop insurance and coverage against natural disasters are becoming critical for rural and semi-urban markets.

• Microinsurance and financial inclusion: Targeted at low-income households, microinsurance products are gaining traction, bridging the gap between affordability and coverage.

• Digital first distribution models: The proliferation of mobile and internet penetration is driving insurers to adopt digital-first distribution models, enabling wider reach and lower operational costs.

The Road Ahead

India’s insurance sector stands at the cusp of a significant transformation. While inflation and economic uncertainties pose challenges, the growing adoption of digital technologies, coupled with evolving consumer preferences, presents a unique opportunity for insurers to innovate and expand their offerings. By addressing emerging risks and leveraging technology, insurers can unlock new growth avenues and play a pivotal role in shaping the financial resilience of Indian households in 2025 and beyond.

Imagine receiving a video call from your bank’s CEO, urgently instructing you to approve a wire transfer. The face, voice, and mannerisms all check out. But it’s not your CEO—it’s a deepfake.

This isn’t science fiction. It’s a growing reality. Deepfake-driven financial fraud in India has surged by 550% since 2019, with projected losses reaching ₹70,000 crore in 2024 alone, according to a BusinessWorld report. With over 11 lakh video KYC calls taking place daily—86% of which are vulnerable to spoofing—the financial sector is under siege. Even the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have warned investors against deepfake videos impersonating their CEOs. As trust erodes and attacks multiply, India’s financial institutions must act—decisively and immediately.

To fight back, banks and fintechs need to modernize their identity and access management (IAM) strategies. The first step is adopting advanced identity verification tools. Facial recognition with liveness detection can help distinguish between real users and digitally manipulated identities. These systems analyse micro-expressions, eye movement, and texture depth to verify the authenticity of a user in real time.

Next, verified digital credentials offer a more secure form of identity proof. These cryptographically secure credentials—stored in tamper-proof digital wallets—bind a user’s identity to a digital certificate that can be validated without relying on physical documents. This ensures not just who a person is, but also the integrity of the information they present.

Decentralized identity systems go a step further by giving users control over their personal data. Rather than storing sensitive identity information in a central repository—a prime target for hackers—these systems distribute data across a secure, decentralized network. This model minimizes the exposure of sensitive data and helps institutions revoke or update credentials in real time.

Adaptive authentication adds yet another layer of defense. By continuously analyzing behavioral signals—like typing speed, device fingerprinting, and geolocation—financial service providers can detect unusual activity patterns and trigger real-time alerts or additional verification steps before a transaction proceeds.

Finally, policy-based access controls (PBAC) ensure that even if a deepfake bypasses the initial layer of authentication, access to sensitive systems is dynamically restricted. PBAC evaluates user attributes, device context, and transaction risk before granting access—helping prevent costly breaches.

Deepfake fraud isn’t a distant threat—it’s here. Indian financial institutions must future-proof their defenses with layered IAM strategies that keep pace with the evolving threat landscape.

To learn more about combating deepfake fraud and modernising IAM strategies, come listen to the Ping Identity session at the event.

Artificial Intelligence has moved beyond the realm of experimentation, actively reshaping how organisations operate, engage, and grow. From finance to retail, manufacturing to healthcare, AI’s enterprise potential lies in its ability to unlock value from data, enhance experience, and deliver measurable outcomes at scale, often challenged with constrained budgets and legacy infrastructures. In this context, AI is no longer optional; it is an industry-wide strategic priority.

Despite clear benefits, common barriers persist. Fragmented data ecosystems impede holistic analysis. Manual, judgement-driven processes introduce latency and inconsistency burdened with an increasingly complex regulatory landscape. If left unaddressed, these challenges will stall progress. However, they also present a collective opportunity for industry stakeholders to leverage AI. The potential for AI is manifold. By embedding intelligence at the core of key functions, enterprises can achieve agility and resilience that were previously unattainable.

That said, responsible implementation is vital. Effective governance must be embedded from the outset. Transparent models with auditable data lineages are critical to building trust among regulators, customers and employees. Data residency requirements demand that AI workloads run within approved environments, ensuring that sensitive information remains under strict control. Ethical guardrails designed to minimise bias are important, especially as AI begins to influence high-stakes decisions. A comprehensive governance framework that addresses auditability, data integrity and user-management policies ensures that every insight is both defensible and transparent.

That’s where Business Impact AI becomes critical. It goes beyond generic AI tools, focusing on domain-rich intelligence designed to work within enterprise constraints.Key capabilities include: unifying all relevant data into a cohesive knowledge layer; orchestrating specialised AI experts to assist, augment and elevate core operations; optimising underlying language models to eliminate vendor lock-in while maximising accuracy, speed and cost efficiency; and embedding a governance module that monitors AI agents and data at scale for safety, auditability and compliance.

By seamlessly ingesting both structured and unstructured data, these platforms act as enterprise-grade intelligence engines. Business Impact AI platforms function like a digital expert, orchestrating decision workflows, anticipating needs and delivering prescriptive outcomes without compromising sovereignty or trust.

The next chapter of industry transformation belongs to those who adopt AI as an enterprise enabler. Adopting platforms that think like domain experts, act autonomously under robust governance and deliver sustainable impact. Our goal should be clear- champion AI strategies that balance innovation with accountability, ensuring this technology fulfils its promise to reshape industries for the better.