Shifting AI Priorities in Banking

In the evolving world of financial services, Sopnendu Mohanty, co-founder of the Global Finance and Technology Network (GFTN), is pushing banks to rethink their approach to artificial intelligence. Rather than deploying AI primarily for cost-cutting measures that lead to mass layoffs, Mohanty advocates using the technology to foster financial inclusion, particularly for low-income populations often sidelined by traditional lending models. Speaking at the Fortune Brainstorm AI Singapore conference, he highlighted how AI can generate “credible” data on customers, enabling loans without collateral. This perspective comes amid growing concerns that AI’s automation focus exacerbates inequality, as noted in a recent Fortune article.

Mohanty’s call resonates with global statistics: The World Bank reports that only 25% of people in low- and middle-income economies accessed formal borrowing in 2024. By leveraging AI to analyze alternative data sources like mobile usage or transaction histories, banks can assess creditworthiness more inclusively. This shift could unlock lending for millions, promoting economic growth in underserved regions. Recent developments, such as the Reserve Bank of India’s proposed framework for AI adoption, emphasize safeguards and inclusion, as detailed in a Computer Weekly report from just days ago.

Real-World Applications and Innovations

Banks worldwide are beginning to heed such advice. For instance, in the Philippines, financial institutions are urged to adopt human-centered AI for better customer experiences and personalization, according to Asian Banking & Finance. This includes using AI to tailor financial products to unbanked populations, reducing barriers to entry. In India, AI is enhancing operational efficiency by up to 46%, per the Reserve Bank, allowing for more resources devoted to inclusive lending.

Moreover, innovative projects like those discussed at the GFTN Forum Japan 2025 showcase AI’s transformative potential. A dialogue between Mohanty and SMBC Group’s Akio Isowa, covered in DX-link, explored how AI agents can automate financial tasks while prioritizing inclusion. Posts on X from industry experts, such as those highlighting AI in fraud detection and personalized banking, reflect a growing sentiment that AI should serve societal goals, not just corporate profits.

Challenges and Ethical Considerations

Yet, implementing AI for inclusion isn’t without hurdles. Data privacy concerns loom large, as creating “credible” customer profiles requires handling sensitive information responsibly. Mohanty himself critiques the overemphasis on automation that displaces workers, urging a balanced approach. A Taylor & Francis study from 2021 underscores AI’s role in reaching the 1.7 billion unbanked adults noted by the World Bank’s Global Findex, but stresses the need for ethical frameworks.

Regulatory bodies are stepping up. The Hong Kong Monetary Authority reports 75% AI adoption in banking, focusing on RegTech for compliance, as per recent X discussions on fintech advancements. Banks like JPMorgan and Bank of America are scaling AI for fraud and personalization, but in regions like India, legacy systems slow progress, according to posts from users like Suraj Prakash on X.

Future Prospects and Industry Impact

Looking ahead, Mohanty’s vision could redefine banking’s social contract. By 2025, trends like green fintech and AI-driven fraud detection, as outlined in X posts by Dr. Khulood Almani, suggest a broader integration of AI for sustainable finance. Initiatives such as tokenizing data for earning intelligence, mentioned in X content from Min, point to decentralized models enhancing inclusion.

Ultimately, as banks pivot from efficiency gains to equitable access, the industry stands to benefit. EY’s insights on AI reshaping financial services, from a EY publication, affirm that innovation must align with inclusion to drive long-term value. Mohanty’s advocacy, amplified through platforms like the Singapore FinTech Festival he pioneered, positions AI as a tool for empowerment, potentially bridging the gap for billions excluded from formal finance. This strategic redirection not only mitigates risks of inequality but also opens new revenue streams through expanded customer bases, marking a pivotal evolution in global banking practices.