News Summary

• The governor of the Reserve Bank of India (RBI) has told the country's banks to put artificial intelligence at the heart of their lending patterns.
• The approach is based on the assumption that models trained on unconventional data can identify and leverage data points that manual underwriters would struggle to spot or justify easily.
• This would, as per RBI governor Sanjay Malhotra, both strengthen the credit market and enable financial inclusion by adding a new class of borrowers previously overlooked by conventional methods.
• The winners of the AI era will not be the fastest or heaviest adopters but the institutions that best understand what they deploy, own its outcomes, and keep customer trust.