New Delhi [India], August 11 (ANI): India's fintech ecosystem is entering a defining phase of transformation, where Artificial Intelligence (AI) is evolving from a tool for automation and analytics into a strategic capability that can autonomously execute, optimise and enhance financial services.

According to a joint knowledge paper by ASSOCHAM and KPMG in India titled 'Beyond digital infrastructure,' released at ASSOCHAM's 3rd India International Fintech Festival, the country is uniquely positioned to lead this shift through its robust Digital Public Infrastructure (DPI), expanding connectivity, and rich data ecosystems.

The report highlighted that foundational digital assets such as digital identity, real-time payments, consent-based data sharing, and secure digital records create an environment conducive to large-scale AI deployment.

Financial institutions are transitioning from pilot programs to enterprise-wide adoption, embedding AI across customer engagement, fraud detection, compliance, risk management, and decision-making functions.

Highlighting the sector's evolution, Akhilesh Tuteja, Partner and National Leader - Clients and Markets, KPMG in India, said, 'India has built a robust digital finance ecosystem powered by Digital Public Infrastructure, widespread digital adoption, progressive regulatory frameworks and a thriving culture of innovation.'

'As this ecosystem continues to evolve, AI is emerging as the next transformative force, enabling smarter decisions, adaptive experiences and more autonomous financial operations,' Tuteja stated. 'India's next phase of fintech leadership is likely to be defined not by digital infrastructure alone, but by how effectively intelligence is embedded across the ecosystem.'

The paper identified strategic priorities for the sector, including expanding compute capacity, strengthening governance frameworks across privacy and cybersecurity, and scaling AI across core functions such as lending, underwriting, and claims processing. It also emphasized developing inclusive human-computer interactions through voice-first and vernacular interfaces to deepen access.

Discussing the role of data in this transition, Hemant Jhajhria, Head of Consulting, KPMG in India, said, 'India's fintech story over the past decade has been one of building trust at population scale.'

'As financial institutions gain access to increasingly rich streams of transaction, identity and behavioural data, AI is emerging as the intelligence layer that transforms information into insight, insight into decisions and decisions into action,' Jhajhria added.

Addressing the broader policy and economic objective, Saurabh Sanyal, Secretary General, ASSOCHAM, said, 'As we enter the next phase of growth, the convergence of Artificial Intelligence, Digital Public Infrastructure and progressive regulation presents an unprecedented opportunity to transform financial services, deepen inclusion and strengthen India's global leadership in digital finance.'

The report noted that building a contextually relevant, AI-native financial ecosystem requires balancing technological innovation with governance, ensuring long-term resilience and value creation across the financial sector. (ANI)