Piramal Finance, a wholly owned subsidiary of Piramal Enterprises Limited, is making significant strides in the financial sector by integrating artificial intelligence into its core lending operations. Saurabh Mittal, the company’s Chief Technology Officer, recently discussed the impact of AI and machine learning on the efficiency and scalability of its business during an interview with TechCircle. The company is leveraging these technologies to enhance decision-making processes while adhering to stringent financial regulations.
The transformation at Piramal Finance focuses on embedding intelligence throughout the lending lifecycle rather than simply layering technology onto existing processes. The company has invested in advanced AI and machine learning capabilities that encompass various stages of lending, including onboarding, underwriting, disbursement, monitoring, and collections. AI-driven systems streamline data processing by triangulating information from multiple sources like KYC records and bank statements. This automation not only reduces the turnaround time for loan processing but also lowers operational costs for both customers and internal teams.
In underwriting and risk management, Piramal Finance employs multiple supervised models for credit assessment, fraud detection, income estimation, and policy evaluation. These classical machine learning models work alongside AI agents, providing underwriters with more reliable data at the point of decision-making. The incorporation of AI-driven document synthesis also aids teams in interpreting complex profiles and large datasets, resulting in scalable growth while maintaining stringent risk discipline.
AI and machine learning have become foundational capabilities within the organization. Employees interact with AI-driven systems daily, utilizing machine learning for risk differentiation and enhanced collections. The company’s AI assistant, ARYA, plays a crucial role in supporting workflows, tracking sales performance, and managing internal policies. This widespread integration of AI is supported by a modern technology stack that ensures scalability and low latency, fostering collaboration between business users, engineers, and AI practitioners.
One notable example of the tangible business impact from these advancements is the introduction of an AI-driven underwriting framework. Instead of a one-size-fits-all approach, Piramal Finance has developed a range of product-specific scorecards that effectively assess credit, fraud, income, eligibility, and asset quality. This tailored approach has significantly improved risk differentiation and facilitated more confident lending decisions. Additionally, their patent-pending leverage risk model identifies customers who may become over-leveraged post-disbursement, even if they initially appear financially stable, which has proven to be a valuable tool in predicting default risk.
While the company is also exploring generative AI, it emphasizes a cautious approach due to the regulated nature of the financial services industry. GenAI is being utilized to augment human capabilities, focusing on internal productivity and workflow efficiency while adhering to stringent governance frameworks. AI-generated outputs undergo rigorous review before being deployed, ensuring compliance with risk management strategies.
Balancing innovation with cybersecurity, compliance, and data privacy is a critical focus for Piramal Finance. The organization has invested in robust governance structures and model lifecycle management, which include dedicated teams that monitor model performance and explainability over time. For instance, computer vision models are employed to detect document tampering, enhancing fraud prevention measures. Importantly, AI alerts are always subject to human review to safeguard against potential risks.
Looking ahead, Piramal Finance aims to make AI a cornerstone of its operational strategy over the next few years. The company envisions AI streamlining business execution in areas like customer acquisition and credit approvals while serving as a consistent support system for frontline teams. Another objective is to expand AI-driven productivity beyond engineering roles, targeting corporate and support functions to eliminate repetitive tasks and empower teams to focus on more complex challenges.
Fostering a tech-first, AI-native culture is also a priority. Piramal Finance recognizes that successful AI adoption stems from user-driven initiatives. The company cultivates cross-functional teams that merge engineering, AI expertise, and domain knowledge to create solutions that deliver real value. Training programs further enable non-technical employees to contribute to AI development, reinforcing a collaborative ecosystem.
Partnerships play a vital role in Piramal Finance’s innovation strategy. Collaborations with major cloud service providers such as AWS, Azure, and Google Cloud enhance its technological capabilities. However, the company believes that the true value lies in combining external expertise with strong internal ownership to develop solutions tailored to customer needs. This holistic approach positions Piramal Finance as a forward-thinking player in the evolving landscape of financial services, where technology and risk management converge.
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