Daijiworld Media Network – New Delhi

New Delhi, Feb 14: “Technology should do the hard work, so people can do the things that make them the happiest in life.” The words of Larry Page, co-founder of Google, appear to have found resonance in the global banking industry, especially in the fast-evolving personal loans segment.

Banks across the world are reimagining high-demand products like personal loans through the lens of customer centricity. By harnessing data intelligently within their systems, lenders are striving not just to stay competitive but to build lasting trust and loyalty.

From anticipating customer needs to offering relevant financial solutions even before a situation arises, banks are increasingly accompanying customers from their “moment of need” to their “moment of panic,” offering timely support with customised offerings.

This shift is reflected in numbers. Personal loans remain one of the fastest-growing credit segments in India, with assets under management (AUM) touching Rs 15.9 lakh crore as of September 2025, marking a 13% year-on-year growth. Faster disbursals, user-friendly digital platforms, and deeper credit inclusion in semi-urban and rural areas have strengthened consumer confidence to pursue lifestyle aspirations.

Personalised to perfection

Banks are moving away from generic loan products to hyper-personalised offerings. Each customer now receives a tailored loan proposal based on income profile, credit history, lifestyle patterns and repayment capacity.
Right from the first interaction until the final EMI payment, the journey is designed to be seamless and customised. Today’s customers expect relevance, clarity, safety and convenience in every financial interaction — and banks are aligning their strategies accordingly.

Technology as the true enabler

Data analytics and Artificial Intelligence (AI) have emerged as game changers. Continuous data assessment enables banks to anticipate potential needs — whether for travel, gadgets or home upgrades — while evaluating affordability and risk tolerance in real time.

Pre-approved personal loans disbursed in under a minute are prime examples of this transformation. Features such as flexible EMI dates and part-payment options are increasingly aligned with customers’ real-life cash flows.

With AI-driven models, banks now rely not only on traditional documents but also on real transaction behaviour, including spending patterns, repayment track records and digital footprints. This facilitates dynamic credit limits and smarter pricing, ensuring quicker and fairer decisions without unnecessary paperwork.

Transparency builds trust

Once customer insights are mapped, banks are also ensuring transparent communication on interest rates, EMIs, charges and terms. Digital agreements and app-based dashboards allow customers to track every detail effortlessly, often eliminating the need to visit a physical branch.

Such convenience and clarity strengthen long-term relationships. Industry experience indicates that enhanced satisfaction translates into improved Net Promoter Scores (NPS), higher repeat business and increased demand for top-up loans.

Inclusive and future-ready

Young professionals, first-time borrowers and self-employed individuals stand to benefit significantly, especially as their income patterns evolve. High-net-worth customers, too, value tailored experiences that match their expectations for premium financial solutions.

The journey of hyper-personalisation is expected to deepen further with advanced analytics and consent-based data usage. As highlighted in the Global Banking Review by McKinsey & Company, precision — not size — is emerging as the key differentiator in the AI era, enabling even smaller banks to compete effectively.

Customers have embraced personalised financial products, particularly personal loans. The expectation now is clear: banks must continue to deliver timely, relevant and seamless experiences that fit naturally into everyday life.