Axis Bank is building an AI assistant to help people finish online personal loan applications. The target is narrow and real: most applicants give up before any money reaches them.
The 8% problem
Of every 100 people who start a personal loan application online with Axis, only 8 complete it and get the money disbursed. That figure comes from Sameer Shetty, the bank's group head of digital business and transformation and strategic programs. The bank thinks an interactive AI guide could lift the completion rate to somewhere between 12% and 15%.
Shetty told Mint the feature is "right now in development". Most of the people who walk away, he said, were never rejected. They get anxious about the interest rate, worry about hidden fees, or want someone to negotiate with. The online journey is fully automated, so there is nobody on hand to answer those doubts. Branches convert far better, because someone is there to talk to.
What the agent would do
A customer will be able to ask the agent whether a better rate is possible. Shetty said the answer might be yes or no, or the agent might explain why the rate is what it is for that customer and then try to persuade them to go ahead.
Shetty called 8% a very good rate for end-to-end digital lending as things stand. He thinks AI-led support can push it higher.
The scale behind it
- Fully digital originations made up 84% of Axis's personal loan payouts in the September quarter.
- The personal loan book stands at ₹84,954 crore, up 8% year on year.
- Technology now takes 10% of the bank's operating expenses, up from 8.5% three years ago.
Axis also hired Namrata Dubashi from McKinsey as its AI officer in June, making it one of the first Indian banks with that role. It is not alone in spending: SBI's CIO said in August that the bank would invest $1 billion in a comprehensive AI framework.
My read
It sounds like a small project, but it is pointed at the right place. Most BFSI AI conversations are about underwriting and fraud. Those matter. A lot of value, though, leaks out at the front of the funnel, from people who would qualify and quit anyway. Going from 8 completions in 100 to 12 is a 50% jump in disbursals from the same traffic.
The hard part is trust. An agent designed to convince a hesitant borrower sits close to the line between helping and pushing. A June report from the World Economic Forum and Accenture made the same point: AI that strengthens customer relationships only works if customers trust how it is being used. If Axis gets the transparency right, and the agent explains the rate instead of just selling it, I'd expect other lenders to follow fast.
