AI to reshape financial market infrastructure, says State Bank of India chairman CS Setty – News Air Insight

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Mumbai: State Bank of India chairman CS Setty said on Wednesday artificial intelligence (AI) will likely play a defining role in the next phase of financial market infrastructure, with the potential to transform risk management, enhance operational efficiency and enable real-time surveillance.

By leveraging large datasets that include transactions, counterparty behaviour and market conditions, AI and machine learning can enable dynamic margining, real-time risk assessment and more accurate forecasting of exposures, he said, delivering a speech at the silver jubilee of the Clearing Corp of India (CCIL).

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This shift could move market infrastructure institutions from being post-trade processors to pre-emptive risk managers capable of anticipating stress before it materialises, he said.

“The next 25 years will not just be about scale, but about intelligence scale. Financial markets are now evolving at a faster pace and are more interconnected. New asset classes will emerge, cross-border flows will intensify, and risk will develop in ways that are less visible but potentially more systemic,” Setty said. “In this environment, CCIL’s role will become even more strategic and AI will be a defining force in this transformation.”

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The emphasis, Setty noted, will be on building agile systems capable of adapting to rapid changes while continuing to ensure trust, settlement certainty and systemic stability. In this environment, institutions such as CCIL will need to deepen their technological capabilities while maintaining robust safeguards. Cybersecurity, operational resilience and regulatory alignment are expected to remain critical, particularly as financial infrastructure becomes increasingly digitised and exposed to evolving threats.



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