Indian monetary providers firm Bajaj Finance has set formidable progress targets below its BFL 3.0 initiative. The corporate goals to turn out to be an early adopter of rising applied sciences corresponding to synthetic intelligence (AI) to drive progress and cut back prices. Bajaj Finserv at present has over 300 initiatives throughout its firms centered on leveraging Generative AI (GenAI), as shared throughout its ‘Investor Day’ presentation to analysts and traders on the Group assembly in Mumbai on December 10, 2024.
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“We imagine that monetary providers in India is more and more getting digital, it’s leveraging information. And people firms that may handle the best stability between individuals and digital, between progress and threat, between innovation and accountability, are those which have a larger likelihood in reaching out to prospects in what’s in any other case a really commoditised business,” mentioned Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv Restricted, the holding firm for the monetary providers companies of the Bajaj Group.
Sanjiv highlighted the success of GenAI, stating, “You may see with Gen AI over 300 initiatives. On a kind of initiatives we’ve got a Gen AI voice-enabled instrument, which you’ll’t imagine isn’t a human that’s speaking and promoting on common 10,000 loans a month for the final yr.” He emphasised that lots of the firm’s initiatives are operational and never simply in pilot phases.
“We additionally imagine that Gen AI by bringing in pure language into programming will allow a bigger, bigger variety of Indians to get skilled for these providers. As a rustic, we’ve got to ensure we create job alternatives for them. As a result of now the coaching is getting even less complicated once more.,” Sanjiv added.
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Insurance coverage and AI Integration
Bajaj Allianz Basic Insurance coverage Firm claimed to be the primary massive insurer to transition its core methods to the cloud. Its AI-driven voice bot at present serves over 1 lakh lively customers. The corporate is leveraging GenAI alongside conventional AI and automation to drive digital transformation. Partnerships with key Giant Language Mannequin (LLM) gamers like Microsoft, Anthropic, and Google are enabling reside use instances, with a number of others within the pipeline, the presentation mentioned.
Bajaj Allianz highlighted its Primary GPT Workbench, a platform enabling staff to experiment with LLMs and implement standalone use instances. One other spotlight is “Insurance coverage Samjho,” an AI-enabled instrument that simplifies insurance coverage for purchasers by offering prompt, easy-to-understand solutions to uploaded coverage queries. One other mission, “Ask Us,” serves as a GenAI-powered assistant for worker queries.
AI has considerably enhanced buyer interplay at Bajaj Allianz. At the moment, 76 p.c of digital buyer care is dealt with by AI-enabled BOT, with 4.5 crore bot messages exchanged and a pair of.39 lakh calls dealt with by voice BOT.
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Bajaj Allianz Life Insurance coverage
After which, the presentation is adopted by Bajaj Allianz Life Insurance coverage, which claims to be India’s solely company channel that’s 100% digital, with a community of practically 1.6 lakh brokers.
Tarun Chug, MD and CEO of Bajaj Allianz Life Insurance coverage, famous the potential of AI in life insurance coverage. “Prospects present about 120 to 130 information factors when filling varieties. This information may help handle not solely particular person wants however family wants as nicely, enabling upselling alternatives,” he defined.
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Improvements in GenAI and Digital Providers
Bajaj Allianz Life Insurance coverage Firm (BALIC) has additionally developed a GenAI-powered Sensible Pitch platform, which generates tailor-made gross sales pitches by analysing prospects’ distinctive preferences and personas. This instrument has been utilized by 2,000 high distributors who’ve transcribed their gross sales pitches into the system. Moreover, BALIC’s NLP-based WhatsApp service has served over 14 lakh prospects, streamlining digital providers.
Chug highlighted the corporate’s superior AI capabilities, stating, “We now have probably the one AI mind within the sector. I can perhaps even name out on this planet which is 97 p.c right on all utterances that it hears in a sector which may be very tough. And that is pushed on WhatsApp.”
He famous that the engine additionally gained the Insurer Innovation Award 2023 on the World Digital Insurance coverage Awards for the APAC area. He additional shared that this marks the primary time India has gained this International award.
“So immediately, whether or not it is our worker who needs any solutions by itself on Provident fund statements or on incentives on something that she or he would need answered on gold sheets, on depart, and so forth, might be carried out by means of the WhatsApp engine. Equally, that is for the advisor. An advisor can see the place she or he stands. It’s there for the client the place there are 56 providers for the client,” Tarun Chug additional shared.
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Bajaj Finance’s Imaginative and prescient for BFL 3.0
Rajeev Jain, MD of Bajaj Finance, emphasised the corporate’s pivot towards changing into a fintech and AI powerhouse as a part of its Lengthy-Vary Technique (LRS).
“BFL is at present implementing 29 GenAI use instances throughout 25 work streams, which can ship an annual value save of Rs 150 crore in FY26 alone. However extra importantly, GenAI adoption has helped us construct a a lot clearer strategic roadmap,” Bajaj Finance mentioned in its presentation to traders.
“Megatrends are principally highly effective transformative forces that would change the financial system, enterprise and society. They’re structural shifts and which are long term in nature and customarily have typically irreversible penalties for companies,” Rajeev Jain, famous, including, “We predict GenAI has transitioned to AI and is a Mega-Megatrend.”
“We’re transitioning from know-how and AI information first to know-how and AI first. We’re principally saying that over the following 24 months, we need to be a agency which is to make use of know-how and AI first as organisation tradition to resolve all issues,” Jain elaborated.
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“Expertise and AI-first as an organisation tradition to resolve all issues. Be an early adopter and spend money on rising applied sciences and information practices. It ought to lead to sustained progress, decrease prices, improved productiveness, superior buyer expertise and sturdy controllership,” Bajaj Finance mentioned in its presentation to traders.
“BFL can be A FinAI firm with AI-enabled know-how structure, which integrates AI throughout all its processes to considerably enhance buyer engagement, develop income, cut back Opex, cut back credit score prices, improve productiveness and strengthen controllership,” the corporate shared in its presentation.
Underneath BFL 3.0, the corporate goals to rework into A FinAI firm, leveraging AI to boost buyer engagement, develop income, cut back operational prices, minimise credit score dangers, enhance productiveness, and strengthen inside controls. Jain outlined particular purposes of AI, together with conversational AI for gross sales and cross-selling, AI-driven engagement instruments, and AI-enabled underwriting and coaching methods.
“If AI didn’t clear up for income, USD 200 billion of investments that the large tech has made can be of no worth as a result of and massive tech prospects are principally enterprises I feel. So you will notice AI for income, AI to scale back value, AI for design, AI for threat, AI for credit score, AI for productiveness and AI for controllership,” Rajeev Jain defined, including, “There’s nothing that’s left that won’t contact AI so far as we’re involved over the following 12 to 24 months.”
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Tens of millions of SMS despatched to Customers
Bajaj Finance sends 560 million SMS messages every month. In response to the corporate, all of that is passive communication, and so they plan to leverage AI to develop extra participating conversations with prospects. “Think about the facility that may unleash on these 560 million SMS as we foresee a 3x plus conversion charge which implies 560 million will go to 180 million or one-third,” Jain famous.
Leveraging AI throughout Domains
Bajaj Finance plans to leverage AI throughout varied domains, together with conversational AI for gross sales and cross-sales, an interactive multi-modal AI assistant, conversational AI for enterprise processes, an underwriting AI co-pilot for picture processing, observe summarisation, screening, and validation. Moreover, the corporate goals to implement an AI-enabled mortgage origination system, AI-powered engagement and coaching, in addition to audit co-pilot and auto-pilot capabilities.
