Sopnendu Mohanty Urges Banks to Shift AI from Cost-Cutting to Financial Inclusion 25% in Low-Income Markets Access Formal Borrowing

Sopnendu Mohanty, co-founder of the Global Finance and Technology Network (GFTN), has urged banks to shift their focus from using artificial intelligence (AI) to automate layoffs to leveraging the technology for expanding financial inclusion. Speaking at the Fortune Brainstorm AI Singapore conference, Mohanty argued that AI’s potential should prioritize serving low-income populations, who are often excluded from traditional banking systems due to a lack of collateral. “That’s not what we want AI to do,” he emphasized, criticizing the current emphasis on AI-driven cost-cutting measures that “fire hundreds of people” [1].

The traditional lending model, Mohanty explained, relies on collateral, which systematically excludes millions of low-income individuals. According to the World Bank, only 25% of people in low- and middle-income economies accessed formal borrowing in 2024. This exclusion, he described as the “elephant in the room,” highlights a systemic failure to address global credit needs. Mohanty proposed that AI could generate “credible, predictive, golden source behavioral data” to replace collateral, enabling banks to assess creditworthiness through alternative metrics like spending patterns, employment history, or mobile usage [1].

GFTN, backed by Singapore’s Monetary Authority, aims to advise emerging markets on integrating technology into finance. Mohanty pointed to Southeast Asian companies like Grab, Sea, and Goto as examples of firms using data from ride-hailing and e-commerce platforms to serve underbanked customers. He also cited India’s Aadhaar system, which provides unique IDs to residents, as a foundational infrastructure for identity verification. However, he envisions a future where decentralized networks—not government-controlled systems—manage identity data, reducing reliance on centralized authorities [1].

The debate over AI’s role in the workforce remains contentious. While banks increasingly adopt AI for cost reduction, Mohanty warned against prioritizing efficiency over human capital. He stressed the urgent need for upskilling to mitigate economic displacement, noting that Singapore has already launched initiatives to train 15,000 AI practitioners across sectors like retail, manufacturing, and healthcare. Digital minister Josephine Teo highlighted the importance of early adopters in driving broader AI adoption, ensuring that professionals like lawyers and doctors become proficient in AI tools [1].

Mohanty’s call reflects a broader industry tension between AI’s disruptive and inclusive potential. While automation threatens jobs, he argued that the technology could democratize access to financial services if directed toward underserved communities. His critique of collateral-based lending and advocacy for behavioral data align with a growing push to align technological progress with equitable growth. However, challenges remain, including the ethical use of data, infrastructure gaps in emerging markets, and the need for regulatory frameworks that balance innovation with consumer protection [1].

Source: [1] [Banks should stop using AI to 'fire hundreds of people'—instead, they should use it to lend to low-income clients, says GFTN’s Sopnendu Mohanty](https://fortune.com/asia/2025/07/28/banks-ai-financial-inclusion-gftn-sopnendu-mohanty-brainstorm-ai-singapore/)