In a significant development for the banking, financial services, and insurance (BFSI) sector in India, Pine Labs, in collaboration with its API infrastructure subsidiary Setu and Sarvam AI, has launched ‘Sesame’. This large language model (LLM) marks the first of its kind developed specifically for the BFSI sector. Sesame promises to bring a new era of digital intelligence to financial services, enhancing everything from credit underwriting and fraud detection to loan performance monitoring and personalized financial advising.
About Setu and Sarvam AI
Setu and Sarvam AI are at the forefront of the AI revolution in India’s financial sector. Setu, established to empower businesses and developers, provides innovative, low-cost, modular API infrastructure. This design enables rapid deployment of fintech products and services, significantly reducing the time from concept to market. Setu’s APIs are tailored to meet the evolving needs of the next billion users, fostering a more inclusive financial ecosystem.
Since its founding in 2018, and following its acquisition by Pine Labs in 2022 for an estimated USD 70-75 million, Setu has been at the forefront of integrating technology solutions across multiple domains, including account aggregation, data gateway, identity verification, and embedded finance. The launch of Sesame underscores Setu’s pivotal role in Pine Labs’ strategy to harness AI for enhancing BFSI processes and offerings.
On the other hand, Sarvam AI is dedicated to advancing the field of generative AI technologies. The company’s mission is to develop a comprehensive stack of generative AI solutions that not only includes large-scale Indic language models but also an enterprise-grade platform tailored for building generative AI applications. This initiative is aimed at enhancing the linguistic inclusivity and accessibility of AI tools, thereby enabling more personalized and efficient interactions within digital platforms.
Together, Setu and Sarvam AI are setting new benchmarks in the fintech and AI industries. By combining Setu’s agile API infrastructure with Sarvam AI’s cutting-edge generative models, they are not just enhancing financial service offerings but are also creating a more adaptable and robust financial technology landscape in India.
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Strategic Partnerships and Technological Integration
Sesame is the result of a strategic partnership between Pine Labs and Setu, along with Sarvam AI, a firm specializing in the development of advanced LLMs. The collaboration has produced a model that leverages vast amounts of financial data, sourced both internally and externally, to provide insights and solutions tailored to the complexities of the financial sector.
Nikhil Kumar, co-founder of Setu, elaborated on the integration capabilities of Sesame, particularly its synergy with India’s account aggregator framework. “The integration of Sesame with this framework will catapult the BFSI sector into a new dimension of technological application, utilizing LLMs to drive unprecedented efficiencies and innovations,” he stated.
The Impact of Sesame on BFSI
The deployment of Sesame within the BFSI sector could fundamentally transform how financial institutions handle operational complexities. This AI-driven model enhances credit assessment processes with greater accuracy, which not only speeds up decision-making but also reduces the risk of credit defaults. Additionally, by improving fraud detection mechanisms, Sesame helps secure financial transactions and protect against potential losses, contributing to a safer financial environment.
Sesame’s advanced analytics also provide deeper insights into loan performance, enabling institutions to monitor and adjust their strategies proactively. This dynamic approach helps manage risks more effectively and improves the overall financial health of the institutions.
Furthermore, Sesame facilitates a more personalized approach to financial advising by analyzing extensive customer data with heightened precision. This capability transforms customer interactions by delivering customized financial advice tailored to individual needs, thereby enhancing customer engagement and satisfaction. Such personalized service not only meets specific customer expectations but also fosters long-term loyalty, setting new standards in customer relationship management within the financial sector.
Technological Breakthroughs and Future Prospects
Pratyush Kumar, co-founder at Sarvam AI, highlighted the groundbreaking nature of their developments in generative AI. “Our collaboration has led to significant advancements in the accuracy of extracting actionable insights from complex financial statements,” he noted. These technological enhancements are expected to deliver considerable value to enterprises by improving the reliability and efficiency of their services.
This model not only stands to benefit the financial sector but also sets a precedent for future AI applications within various industry verticals. The success of Sesame could lead to broader adoption of similar technologies, potentially transforming operations across multiple sectors with AI-driven solutions.
Looking ahead, Setu plans to expand the applications of Sesame and explore new avenues for deploying AI in financial services. The company aims to continue leading the way in using technology to solve real-world problems, further establishing India’s position as a leader in applied AI innovations.
