Banks are light years behind fintechs in customer experience: Jay Kotak

Indian banks must significantly improve how they treat customers, as they lag behind new-age fintechs in terms of customer experience, said Jay Kotak, Co-head of Kotak 811.

"I think from a banking system level we are not empathetic enough towards our customers...We need to do much better in terms of how we treat our customers. In terms of telecalling, brand experience, quality of our mobile apps. We are light years behind where we need to be and where our competitive fintechs are right now," Kotak said at the Global Investors Meet, Invest Karnataka event 2025 in Bengaluru on February 12.

Kotak also acknowledged India's gap with the U.S. in financial services, citing human and financial capital as the key differentiator. "We need to do a better job in attracting better talent here in India. In comparison, we have a lot to catch up on," he added.

The panel discussion was titled 'Leading the Charge: Young Innovators Shaping India’s Future' and was moderated by Zerodha's cofounder Nikhil Kamath. Other speakers included Parth Jindal, MD, JSW Cement and Suzannah Muthoot, Executive Director, Muthoot Housing Finance Company.

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AI and tech transforming lending

The conversation around financial services is increasingly dominated by the role of Artificial Intelligence (AI) in underwriting and customer engagement.

Suzannah Muthoot highlighted how AI and QR-code-based underwriting are transforming lending in rural India.

"Today, one of the biggest changes is how tech is playing a role in underwriting our customers. In areas where we couldn’t even underwrite, QR code-based underwriting technology is making a difference. Technology like this is really taking financial services to rural systems and helping us reach more customers," she said.

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She also noted that AI-driven underwriting helps approve customers who might have otherwise been rejected. "AI plays a big role in underwriting. We use a lot of our past data—where someone else would have rejected, our AI-based data analysis helps us take those customers," she said. AI is also enhancing vernacular communication, making financial services more accessible.
Parth Jindal, Managing Director of JSW Cement and head of MG Motors India had a different view on AI's growth in India. He said it might not be as beneficial for job creation as in other economies. "For us in India, AI is quite a dangerous tool. When you talk about AI taking over jobs, I don't think it will benefit India," he said.

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Karnataka’s startup push

With Karnataka emerging as a startup hub, State Labour Minister Santhosh Lad revealed that of the 1.5 lakh startups in the state, only 10% are successful, and just 150-200 have become unicorns.

"I'm making a proposal that in the fund of funds, corporates and the government should come together to invest in startups to help them grow in India," Lad said.

He stressed that entrepreneurship—not just government policies—drives a country’s economic growth.