Kyndryl, Suryoday Small Finance Bank partner to deploy Agentic AI across banking operations

As part of the partnership, Kyndryl is set to establish an Agentic AI Centre of Excellence (CoE) for Suryoday Small Finance Bank. The CoE will also help identify and develop use cases for agentic AI, support modernization of banking operations, and accelerate the deployment of AI-enabled capabilities across the bank’s digital and physical channels.

The collaboration will be using the Kyndryl Agentic AI Framework to help Suryoday Small Finance Bank move from individual AI pilots to more integrated AI systems capable of coordinating multiple tasks and workflows. Among the initial use cases are faster digitization and validation of account-opening forms and voice-enabled mobile banking support. The bank will also apply agentic AI to areas such as responding to legal enforcement requests, investigating suspicious transactions, and supporting underwriting for Micro, Small, and Medium Enterprise (MSME) loans. According to the companies, these applications are intended to improve operational productivity while enabling employees to focus on more complex and higher-value activities.

Impact on the AI Market

The collaboration combines Kyndryl’s consulting and AI capabilities with Suryoday Small Finance Bank’s banking operations. Kyndryl will use its Forward Deployed Engineer model to work alongside the bank and identify opportunities where AI agents can deliver measurable business outcomes. Kyndryl also said its approach is focused on deploying AI within governed and resilient operating environments rather than treating agentic AI as a standalone technology initiative.

The company’s consulting capabilities will also support Suryoday Small Finance Bank in aligning its AI strategy with business objectives, while its co-creation and prototyping capabilities are expected to help develop and test new use cases. The partnership also marks another step in Suryoday Small Finance Bank’s efforts to expand its digital capabilities, with agentic AI being positioned as a technology layer for improving customer service, compliance, and operational decision-making across the organization.

Impact on Artificial Intelligence in Banking Market

The global artificial intelligence (AI) in banking market size is estimated at USD 34.58 billion in 2025 and is projected to increase from USD 45.59 billion in 2026 to approximately USD 451.50 billion by 2035, growing at a CAGR of 29.30% from 2026 to 2035.

According to Precedence Research, the rise in technological integration over several end-use industries like automotive, banking and finance, manufacturing, healthcare, and others is driving the growth of artificial intelligence (AI) in the banking market. The integration of rising technological advancements like artificial intelligence and machine learning into the banking sector to increase working efficiency, technological relevance, and a consumer-centric approach is driving the adoption of artificial intelligence (AI) in the banking market. The adoption of AI in banking helps increase efficiency, simplify operations, enhance productivity, and minimize the cost of operations. Thus, AI helps to enhance the overall operational process.

AI, or artificial intelligence, is used to enhance the working process in banking and financial institutions. The integration of AI into banking refers to the combination of advanced technologies like machine learning and data analytics into banking operations. Artificial intelligence is used in banking for data-driven insights, automation, risk management, enhanced customer experiences, and cost reduction in cost. AI reduces manpower and efficiently performs tasks like decision-making, data analysis, and customer service. AI also helps assess customer creditworthiness, predict market fluctuations, and minimize and detect fraudulent transactions. The increasing demand for personalized banking operations by the consumer and the adoption of banking mobile applications for digital banking are further driving the growth of artificial intelligence (AI) in the banking market.

Impact on the Agentic AI Market

The global agentic AI market size is valued at USD 7.55 billion in 2025 and is predicted to increase from USD 10.86 billion in 2026 to approximately USD 199.05 billion by 2034, expanding at a CAGR of 43.84% from 2025 to 2035.

According to Precedence Research, the market is growing due to the rapid integration of AI in various industries, such as finance, transport, defense, and healthcare, due to their ability to fully automate tasks without human interaction. Organizations are scaling AI and analytics, which increases data pipeline complexity. To maintain high-quality data, AI agents are being integrated into pipelines to replace human-driven repair and monitoring. These agents, built with reinforcement learning and modular architectures, automatically monitor pipeline health, detect issues, diagnose problems, and repair them. These systems are designed to understand goals, reason through complex tasks, learn from experience, and self-correct without requiring explicit instructions at every step. Applications span from autonomous robotics and intelligent assistants to dynamic process optimization in industrial and enterprise settings.

The Agentic AI market is expected to grow significantly in the upcoming years, driven by continuous innovation in AI-specific processors, advancements in large language models, and context-aware compounding, which are enabling the development and deployment of more sophisticated agents. Adoption of multi-agent systems, industry-specific solutions, and agent-as-a-service.

Expert Opinion

Baskar Babu R, Managing Director and Chief Executive Officer, Suryoday Small Finance Bank, said the bank is pursuing a digital-first approach to deliver simpler and more trusted banking services while maintaining strong compliance standards. He said the Agentic AI Centre of Excellence will help embed AI capabilities across customer journeys and operational processes to improve onboarding, responsiveness and employee productivity.

Hussain Zaidi, Vice President and Client Unit Leader, Kyndryl India, said the deployment demonstrates how small finance banks can use agentic AI to improve operational scale while maintaining governance and responsible adoption.