Page 22 - Banking Finance August 2025

ARTICLE

The Sonic Revolution:

How Voice and

Vernacular Banking

are Reshaping India's

Vaibhav Sharma
Financial Landscape Senior Manager (Faculty)

Zonal Learning Centre
Union Bank of India, Hyderabad

The accelerated adoption of voice and vernacular banking in India is driven by a confluence of
compelling factors, ranging from the socio-economic imperative of financial inclusion to the
strategic goals of enhancing customer experience and achieving operational efficiencies.

Executive Summary foundational branch networks and the introduction of ATMs,
the industry progressed to internet banking, followed by the
The landscape of financial services is undergoing a profound
transformation, moving beyond traditional digital interfaces ubiquitous mobile banking applications. Today, we stand at
to embrace the power of natural human interaction. Voice the cusp of yet another paradigm shift: the era of voice and
and vernacular banking, driven by advancements in Artifi- vernacular banking. This evolution is not merely about add-
ing a new channel; it represents a fundamental re-imagin-
cial Intelligence (AI) and Natural Language Processing (NLP),
ing of how individuals interact with their financial institu-
are emerging as the new frontier, promising unprecedented
tions, moving towards a more human, intuitive, and hands-
levels of accessibility, convenience, and personalization.
free experience.
In India, a nation characterized by its immense linguistic di-
versity and a persistent drive for financial inclusion, this shift At its core, this transformation is powered by the profound
holds particular significance. This article delves into the criti- impact of language. While digital interfaces have undoubt-
cal drivers, technological underpinnings, unique challenges, edly brought banking closer to millions, they often present
a barrier for those less digitally literate or more comfort-
and immense opportunities presented by the rise of voice
able communicating in their native tongues. In a country
and vernacular banking within the Indian banking sector,
offering a strategic perspective for banking professionals like India, with its vibrant tapestry of 22 scheduled languages
and hundreds of dialects, language is not just a medium; it's
navigating this sonic revolution.
a bridge to deeper engagement and broader financial in-
Introduction: The Dawn of a New Era in clusion. Voice banking, broadly defined, refers to the use of
spoken commands to perform banking transactions, inquire
Banking about account details, or seek customer service.
For decades, banking has evolved through distinct phases,
each marked by a significant technological leap. From the Vernacular banking, on the other hand, encompasses the

20 | 2025 | AUGUST | BANKING FINANCE