August 3, 2025

Bengaluru is currently witnessing a rapid transformation in its fintech sector, driven by Generative AI. This technology has introduced new efficiencies and capabilities that allow startups to innovate and compete on a global scale. With features ranging from multilingual brokerage chatbots to automated error-fixing payment assistants, the fintech landscape in India is constantly evolving. Amazon Web Services (AWS) has a keen interest in the Indian market, with Tiffany Bloomquist, who oversees the startup business for AWS in Asia-Pacific, visiting the country almost every quarter. During a recent trip to Bengaluru, she emphasized how Generative AI is reshaping customer experience. Bloomquist urged entrepreneurs to integrate AI into all aspects of their products to stay competitive in the market. Several factors contribute to the burgeoning fintech ecosystem. Firstly, the government's India Stack provides developers with a framework for digital identity, seamless payments, and efficient data-sharing mechanisms. This infrastructure significantly reduces the barriers for new fintech startups. According to Nasscom, there are now over 240 Indian startups focused on Generative AI, a remarkable increase from just 66 in early 2022. AWS is also playing a pivotal role in supporting these startups through its ten-week GenAI Accelerator program, backed by a substantial $230 million fund. This initiative offers up to $1 million in credits, connects startups with mentors, and arranges crucial meetings with corporate buyers. Seven Indian firms are already part of the current accelerator cohort. What are these startups leveraging AI for? For example, Dhan, a stock-broking platform with around three million users, faced a significant challenge with Know Your Customer (KYC) checks. By training a language model on its internal documents, Dhan successfully automated responses for a quarter of the KYC queries, reducing average wait times and cutting customer support costs by nearly a third. Similarly, Easebuzz, a payment solutions provider, encountered issues with merchants facing integration problems. Their new AI assistant, ERA, analyzes incoming messages against technical manuals, providing real-time troubleshooting and cutting down resolution times from 20 minutes to mere seconds. Consequently, the number of redundant support tickets has dropped by an impressive 80%. Banking tech company Zeta has taken automation to an even larger scale. Each night, the firm processes millions of transactions from merchants. Using a cloud-based processing engine integrated with AI capabilities, Zeta can now reconcile approximately 208 million credit accounts within 40 minutes, a task that previously required a vast and costly hardware setup. Yubi, which operates in the debt marketplace, has also embraced Generative AI. The firm uses large language models to expedite the updating of credit scores. By analyzing a comprehensive array of public filings and bank statements, Yubi can refresh risk models within hours, significantly speeding up the funding process for borrowers. This innovation has reduced the waiting time for funding offers by a third. The shared strategy among these firms is straightforward: they distill their internal knowledge into AI models, present them via chat-based interfaces, and optimize server resources to handle surges in demand. Bloomquist notes the paradigm shift in automation—moving from merely automating servers to automating compliance, advisory services, and building trust with customers. This evolution positions today's founders to potentially shape the next decade of finance. In summary, Generative AI is positioned as a cornerstone of innovation in India's fintech landscape. With robust government initiatives and support from major players like AWS, the stage is set for a new era of financial technology that not only enhances customer experiences but also paves the way for startup growth and global competitiveness.

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Tags: Generative ai, Fintech, Startups, Customer experience, India,