In a conversation with ET, Managing Director Rajeev Jain said the move to a global AI-based system would improve customer conversion rates at a much lower cost while ensuring that loan growth remains at pace current or moving towards a faster trajectory.
“We have already deployed AI in some use cases this year and expect full adoption by December 2026. At the current rate, we are saving between Rs 140 crore and Rs 150 crore per year compared to last year . But the possibilities are endless in terms of significantly improving conversion rates. Costs will also be lower with growth at similar or faster rates,” Jain said.
In a presentation to analysts and investors, Jain said Bajaj Finance aims to increase the total customer base to over 200 million in the financial year ending March 2029 from 92 million currently, increase cross-selling customers to more than 115 million against 58 million and to improve the share of credit to individuals. at more than 4%, compared to less than 3% currently.
Jain said adoption of AI will help Bajaj Finance reach more customers faster, at a lower cost and in a more structured manner, freeing up at least 25% of costs from its agents, giving them more time to perform more productive activities. “Today, we send around 160 million SMS messages after storing the data we have. This could potentially reach over 500 million. With more engaging, AI-generated targeted messages, our propensity to extend a loan increases. Currently we can offer a personal loan, but we cannot judge whether the same person would be interested in a home loan for example. AI can enable customers to choose the loan they want, make an appointment with a sales manager and also, in future, automate the eKYC procedure,” Jain said.
Jain termed the adoption of AI as a mega-megatrend in the market currently and will transform the way Bajaj Finance does business by March 2029. “For example, auditing is an area where companies have less of personnel, but it is a function of great importance. By using AI, we can achieve 100% accurate auditing, which will significantly improve our assurance functions,” he said. Jain said the cost of applying AI to normal business operations has fallen rapidly and will fall even further. “In some cases, where it cost $40 until last year, the cost has fallen to between $3 and $9 in the last year. Costs are falling very quickly and will continue to fall. But to use AI well, you need to be completely on the cloud, which is what we’ve experienced over the last five years and where we have the advantage,” he said. On Wednesday, shares of Bajaj Finance rose 2.6% to close at Rs 7,116. A post-presentation piece was released on the stock exchanges, the stock built on gains to end at Rs 7,123 per share on Thursday .