According to a PwC India report, 90 per cent of Indian financial institutions are prioritising artificial intelligence (AI) and generative AI (GenAI) as key technology enablers for innovation.
Approximately 74 per cent of survey participants also highlighted the significance of data analytics in driving insights and decision-making within the financial services sector. Among the respondents, 84 per cent identified customer experience and engagement, acquisition, onboarding, and servicing as the primary focus areas for innovation initiatives. Additionally, 50 per cent of participants pointed to product distribution as a crucial area for innovation.
The report further indicated that 65 per cent of respondents view risk mitigation and adapting to evolving regulatory landscapes as essential factors, emphasising the need to navigate regulatory challenges while pursuing innovation. Moreover, 45 per cent preferred to foster innovation mainly through internal initiatives, suggesting a reliance on internal resources and expertise. The most common objectives for collaboration and partnerships were improved speed-to-market and collaborative innovation.
Furthermore, the report noted that the primary challenges faced by surveyed companies in their innovation efforts included resource constraints, particularly regarding talent, and the technological complexities associated with new technologies. It also found that 58 per cent of respondents did not have a dedicated vertical or business unit to manage their innovations.
