India’s BFSI Sector Is Not Just Transforming—It’s Rewriting Its DNA

In the corridors of India’s financial institutions, a quiet revolution is underway. Traditionally known for its conservative approach and regulatory focus, the BFSI sector is now emerging as a key driver of India’s digital economy.

From AI-powered customer journeys to cloud-native banking stacks, the sector is embracing a future that’s faster, smarter, and more inclusive. This transformation is shaped primarily by the evolving expectations of Indian consumers, who now live in a world of seamless digital experiences — from how they work and shop to how they interact and manage their money.

Every consumer today is at the center of a connected ecosystem that spans mobile apps, social media, online services, location data, voice, and in-person touchpoints. Enterprises understand this shift and are responding with platforms and services to engage customers more deeply, empower employees, and boost overall productivity.

The New Rules of Engagement

The traditional ‘touch and feel’ banking experience is being reimagined. Physical branches are evolving into financial advisory hubs, while service requests shift to digital backends. Insurance firms, once reliant on paper-heavy processes, now use AI chatbots and predictive analytics to personalize coverage and speed up claims.

This shift extends beyond technology to customer engagement. Case in point is Tech Mahindra’s partnership with Union Bank of India (UBI) to launch ‘Uni-Verse,’ India's first public sector metaverse lounge. This platform lets UBI customers explore banking services in a virtual environment, with personalized interactions and access to product and scheme information. Tech Mahindra leveraged their digital expertise in AI, blockchain, 5G, AR, and VR to develop this innovative banking experience.

Even talent needs are evolving to keep pace with the digital transformation. BFSI firms now seek UI/UX designers, AI/ML engineers, cybersecurity specialists, and blockchain architects. Hybrid roles that combine domain expertise with tech fluency are quickly becoming the standard.

Data Is the New Currency

The average Indian consumer now generates over 12 GB of data per month, a figure set to double shortly. Digital transactions have also surged with a 33% YoY growth. To handle this deluge, BFSI firms are investing heavily in data centres that go beyond storage, supporting real-time analytics, fraud detection, and personalized engagement.

Security is now a fundamental requirement across every layer of the architecture. BFSI firms are deploying anomaly detection, DDoS protection, and zero-trust frameworks to safeguard consumer data and maintain trust. These efforts are supported by modern systems that are built to scale efficiently and self-heal.

Cloud-Native, AI-First, Outcome-Obsessed

The sector’s tech stack is undergoing a radical overhaul. Legacy systems are getting replaced with composable, cloud-native platforms that enable agility and scale. AI is no longer a pilot—it’s embedded across the value chain, from onboarding and underwriting to collections and compliance.

What we're witnessing is a strategic realignment across the industry. As discretionary budgets rebound and economic conditions stabilize, BFSI firms are prioritising long-term digital transformation.

Tech Mahindra’s Role: Engineering the Shift

At Tech Mahindra, we empower financial institutions with scalable digital platforms and customer-centric innovation to drive operational excellence and growth.

We’ve helped a leading public sector bank handle over 500 million consumer transactions through a secure, scalable digital infrastructure. For a top-tier NBFC, we built a cloud-native auto financing platform that reduced loan approval time from seven to two days.

Our AI-powered virtual assistants for a major national bank and a large government-owned bank are redefining customer service by handling queries, onboarding, and support with conversational intelligence. With a top insurer, we drove digital transformation using personalized customer journeys and data-driven insights.

These implementations mark a broader evolution in our approach from one-off projects to building scalable platforms. Our Centres of Excellence across India are helping BFSI clients embrace next-gen financial technologies like AI-led risk scoring, digital KYC, fraud detection systems, and cloud-native stacks, all focused on delivering measurable business outcomes.

The Road Ahead: From Velocity to Value

India’s BFSI sector is no longer playing catch-up—it’s setting the pace. But the journey from transformation to value realisation is never linear. It demands clear vision, velocity, and a relentless focus on outcomes.

At Tech Mahindra, we see the future of BFSI anchored in three core pillars:

• Trust by Design: Security, compliance, and transparency integrated into every layer
• Intelligence at Scale: AI that’s not just smart, but strategic to make decisions
• Experience as Differentiator: Seamless, personalized journeys that turn customers into advocates.

As the sector continues to evolve, we’re committed to helping our partners to shape what’s next—securely, sustainably, and at speed.

Disclaimer

This text was edited with the assistance of an AI tool. The original content, based on Tech Mahindra Limited's intellectual property, was created by a human author. A human editor then reviewed the AI-edited version. The content should not be considered as a substitute for professional advice, and we recommend consulting with appropriate experts or sources for specific information or guidance. We assume no responsibility for any consequences arising from the use of this content. Tech Mahindra Limited retains the copyright of this document.