Neutral impactSector
AI-led lending must deliver returns, not just automation, say NBFC leaders
Economic Times 1 hr ago·9 Oct 2026, 1:43 pm
Non-banking financial companies (NBFCs) are increasingly turning to artificial intelligence to speed up lending processes and improve collections. By using AI, lenders can now approve loans in as little as 15 to 30 minutes and automate many routine tasks. While these technological upgrades offer clear benefits in efficiency, industry leaders at the recent NBFC Leaders’ Retreat emphasized that the technology must also be profitable.
For investors, this news highlights a critical shift in the financial sector. The focus is moving beyond just adopting new tools to ensuring that these tools make financial sense. The success of AI in lending will depend on balancing automation with strong risk controls and reliable data. It is a reminder that technology is only as good as the underlying business model that supports it.
Looking ahead, investors should monitor how NBFCs manage the costs of these systems. The ability to scale AI-led lending successfully will require a focus on cost economics and human oversight. As the sector evolves, the companies that can prove their AI strategies are both efficient and financially sound are likely to stand out in the market.
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