Banks urged to shift AI focus to expand access as 25% lack banking

Banks must redirect their focus from using artificial intelligence to automate job cuts and instead leverage AI to expand financial access for low-income populations, according to Sopnendu Mohanty, co-founder of the Global Finance and Technology Network (GFTN). Speaking at the Fortune Brainstorm AI Singapore conference, Mohanty criticized the prevailing trend of prioritizing productivity gains through AI-driven automation, which he argues risks exacerbating inequality. He emphasized that traditional lending models, which require collateral, exclude a significant portion of the global population, particularly in low- and middle-income economies where only 25% of individuals accessed formal banking services in 2024, according to the World Bank [1]. Mohanty proposed that AI could generate “credible, predictive, golden source behavioral data” to replace collateral, enabling banks to serve underserved communities. This approach aligns with Southeast Asian firms like Grab, Sea, and Goto, which use transactional data from ride-hailing and e-commerce to assess creditworthiness for underbanked customers.

The discussion also highlighted the role of identity infrastructure in fostering financial inclusion. India’s Aadhaar system, a government-led initiative providing unique IDs to residents, was cited as a foundational step. However, Mohanty envisions a future where decentralized networks, rather than centralized authorities, manage identity verification, reducing reliance on state-controlled systems. In the near term, he stressed the urgency of addressing job displacement caused by AI. Singapore’s initiatives, such as training 15,000 AI practitioners across sectors like law, medicine, and manufacturing, were presented as models for upskilling programs aimed at mitigating economic disruption.

GFTN, supported by Singapore’s Monetary Authority, serves as a bridge for emerging markets to integrate technology into finance. Previously known as Elevandi, the organization now advises economies on leveraging AI for inclusive growth. Mohanty’s critique underscores a broader debate: whether AI will deepen exclusion or democratize access. While banks highlight efficiency gains, critics argue that without intentional design, automation could widen inequality. His call for a shift from “productivity-focused AI” to “inclusion-driven applications” challenges institutions to align technological progress with societal needs.

The financial sector’s adoption of AI remains contentious. Proponents emphasize cost reductions and improved service, while skeptics warn of systemic risks. Mohanty’s vision—using AI to replace collateral with behavioral data—could redefine credit accessibility but requires overcoming regulatory and infrastructural hurdles. The success of such efforts depends on balancing innovation with equitable outcomes, ensuring that AI becomes a tool for bridging gaps rather than widening them.

Source: [1] [title1] [https://fortune.com/asia/2025/07/28/banks-ai-financial-inclusion-gftn-sopnendu-mohanty-brainstorm-ai-singapore/](https://fortune.com/asia/2025/07/28/banks-ai-financial-inclusion-gftn-sopnendu-mohanty-brainstorm-ai-singapore/)