Indian monetary companies firm Bajaj Finance has set formidable development targets underneath its BFL 3.0 initiative. The corporate goals to turn into an early adopter of rising applied sciences comparable to synthetic intelligence (AI) to drive development and cut back prices. Bajaj Finserv at present has over 300 tasks throughout its corporations targeted on leveraging Generative AI (GenAI), as shared throughout its ‘Investor Day’ presentation to analysts and buyers on the Group assembly in Mumbai on December 10, 2024.
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“We imagine that monetary companies in India is more and more getting digital, it’s leveraging information. And people corporations that may handle the proper steadiness between individuals and digital, between development and danger, between innovation and duty, are those which have a better likelihood in reaching out to prospects in what’s in any other case a really commoditised trade,” mentioned Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv Restricted, the holding firm for the monetary companies companies of the Bajaj Group.
Sanjiv highlighted the success of GenAI, stating, “You’ll be able to see with Gen AI over 300 tasks. On a kind of tasks now we have a Gen AI voice-enabled software, which you’ll’t imagine just isn’t a human that’s speaking and promoting on common 10,000 loans a month for the final yr.” He emphasised that most of the firm’s tasks are operational and never simply in pilot levels.
“We additionally imagine that Gen AI by bringing in pure language into programming will allow a bigger, bigger variety of Indians to get educated for these companies. As a rustic, now we have 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 energetic 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 circumstances, with a number of others within the pipeline, the presentation mentioned.
Bajaj Allianz highlighted its Fundamental GPT Workbench, a platform enabling workers to experiment with LLMs and implement standalone use circumstances. One other spotlight is “Insurance coverage Samjho,” an AI-enabled software that simplifies insurance coverage for purchasers by offering immediate, easy-to-understand solutions to uploaded coverage queries. One other challenge, “Ask Us,” serves as a GenAI-powered assistant for worker queries.
AI has considerably enhanced buyer interplay at Bajaj Allianz. Presently, 76 p.c of digital buyer care is dealt with by AI-enabled BOT, with 4.5 crore bot messages exchanged and a couple 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 types. This information may help handle not solely particular person wants however family wants as properly, enabling upselling alternatives,” he defined.
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Improvements in GenAI and Digital Companies
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 software 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 companies.
Chug highlighted the corporate’s superior AI capabilities, stating, “Now we have probably the one AI mind within the sector. I can possibly even name out on the earth which is 97 p.c right on all utterances that it hears in a sector which could be very tough. And that is pushed on WhatsApp.”
He famous that the engine additionally received 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 received this World award.
“So in the present day, whether or not it is our worker who desires 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 many others, will be executed via 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 companies 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 turning into a fintech and AI powerhouse as a part of its Lengthy-Vary Technique (LRS).
“BFL is at present implementing 29 GenAI use circumstances throughout 25 work streams, which can ship an annual price 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 buyers.
“Megatrends are principally highly effective transformative forces that would change the financial system, enterprise and society. They’re structural shifts and which might be long term in nature and customarily have normally 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 subsequent 24 months, we need to be a agency which is to make use of know-how and AI first as organisation tradition to unravel all issues,” Jain elaborated.
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“Expertise and AI-first as an organisation tradition to unravel all issues. Be an early adopter and spend money on rising applied sciences and information practices. It ought to end in sustained development, decrease prices, improved productiveness, superior buyer expertise and strong controllership,” Bajaj Finance mentioned in its presentation to buyers.
“BFL might 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.
Below BFL 3.0, the corporate goals to rework into A FinAI firm, leveraging AI to reinforce buyer engagement, develop income, cut back operational prices, minimise credit score dangers, enhance productiveness, and strengthen inside controls. Jain outlined particular functions 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 remedy for income, USD 200 billion of investments that the massive tech has made might be of no worth as a result of and large tech prospects are principally enterprises I believe. So you will note AI for income, AI to cut back price, AI for design, AI for danger, 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 subsequent 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 keeping with the corporate, all of that is passive communication, they usually plan to leverage AI to develop extra partaking conversations with prospects. “Think about the facility that may unleash on these 560 million SMS as we foresee a 3x plus conversion fee which suggests 560 million will go to 180 million or one-third,” Jain famous.
Leveraging AI throughout Domains
Bajaj Finance plans to leverage AI throughout numerous 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, word 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.
