Bajaj Finance's five year plan has a deep AI focus
Bajaj Finance, India's largest non-bank consumer financier has unveiled a new business plan for the next five years which envisages integration of artificial intelligence (AI) across all its processes to improve customer engagement, grow revenue, enhance productivity, strengthen controls and reduce operating and credit costs.
In chat with ET, managing director Rajeev Jain said the transition to an all-encompassing AI based system will improve customer conversion rates at a much lower cost while ensuring the loan growth remains at current rate or moves to a faster trajectory.
“We have already deployed AI in some use cases this year and plan total adopting by December 2026. At the current run rate we are saving Rs 140 crore to Rs 150 crore per year compared to last year. But the possibilities are infinite in terms of significant improvement in conversion rates. Costs will also be lower with growth at a similar or faster rates,” Jain said.
In a presentation to analysts and investors, Jain said Bajaj Finance targets increasing total customer base to more than 200 million in fiscal ended March 2029 from 92 million now, increasing cross sell customers to more than 115 million from 58 million and improving share of retail credit to more than 4% from less than 3% currently.
Jain said adoption of AI will help Bajaj Finance reach out to more customers faster at a cheaper cost and in a more structured way, freeing up at least 25% of the cost of its agents leaving them more time to do more productive activities. “Today we
