Babu Unnikrishnan, the Chief Technology Officer for Banking, Financial Services, and Insurance (BFSI) – Americas at Tata Consultancy Services (TCS), is no stranger to leading through transformation. Over the course of his 27-year career, he has faced immense challenges in building technology strategies for some of the world’s most complex financial institutions.
Today, he stands at the forefront of an industry on the brink of an AI-driven revolution.
The BFSI sector is ripe for change, and Unnikrishnan is one of the key figures responsible for shaping that change. With a focus on co-innovation, customer experience, and cost optimization, his work in AI and machine learning is poised to redefine how banks, insurers, and financial service companies do business.
A Pioneer in a Rapidly Changing Industry
Unnikrishnan’s rise to leadership wasn’t accidental. Over nearly three decades, he has navigated the evolution of financial services technology, watching firsthand as digital solutions transformed from a luxury to a necessity. At TCS, Unnikrishnan is responsible for the technology strategy that powers the BFSI sector, particularly in the Americas, where the market demands rapid innovation and unrelenting focus on efficiency.
He has seen the trends shift from core banking systems and early digital payment solutions to the sophisticated, data-driven services that customers expect today. Now, AI is the next frontier, and Unnikrishnan has taken it upon himself to ensure that TCS not only keeps pace with the changes but leads them.
His core responsibility lies in building robust technology ecosystems that harness the power of AI and data analytics to streamline business operations, enhance customer service, and drive growth. Yet, the challenges are immense. In an industry where trust is paramount, introducing new technologies must be done with precision and care. Unnikrishnan understands this, and his approach to AI adoption reflects the caution and foresight that define his leadership style.
AI: More Than a Buzzword
The term “artificial intelligence” may spark excitement, but Unnikrishnan views it with a pragmatic lens. In financial services, he explains, AI adoption is not about jumping on the bandwagon. It’s about real-world impact.
For him, the main drivers behind AI in the BFSI sector are clear: improving customer experience, driving innovation, and optimizing operational costs. These are not just buzzwords. They are fundamental needs of the financial institutions he works with daily. Unnikrishnan helps these institutions embrace AI in a way that addresses these needs head-on.
“AI has the potential to completely transform how banks and insurers operate,” he explains. But it’s not just about technology for technology’s sake. Unnikrishnan believes in the practical application of AI, where its role is to solve specific business problems, make decisions faster, and drive operational efficiencies across the board. The shift, he says, is from treating AI as a tactical tool for specific use cases to leveraging it as a core driver of strategic decisions.
Facing the Realities of AI Adoption
However, Unnikrishnan is also a realist. He doesn’t sugarcoat the difficulties that come with AI integration. Financial institutions, particularly legacy firms, often face significant hurdles when it comes to adopting cutting-edge technologies. Systems are outdated, data is siloed, and change can be slow. AI promises much, but without the right infrastructure, it can fall flat.
Unnikrishnan’s role is to help these institutions navigate these complexities. His years of experience have taught him the importance of patience and methodical planning. AI isn’t a plug-and-play solution. It requires a deep understanding of data, a clear vision for its use, and a commitment to long-term transformation.
“There’s a misconception that AI is a magical solution that will instantly solve all problems,” Unnikrishnan says. “But the truth is, AI is only as good as the data and strategy behind it.”
This understanding has helped him guide organizations through the often-difficult process of preparing their systems for AI. He emphasizes the importance of clean, organized data, the backbone of any AI solution. Without it, AI can’t provide the insights financial institutions need to make better decisions or improve customer service.
The Collaboration between OpenText and TCS
In his position at TCS, Unnikrishnan is not working alone. One of the most significant moves he has spearheaded in recent years is TCS’s collaboration with OpenText, a global leader in information management solutions. Together, these two giants are working to unlock the full potential of AI in the BFSI sector.
The partnership between TCS and OpenText is a marriage of deep industry expertise and cutting-edge technology. OpenText brings its advanced information management and AI solutions to the table, while TCS offers its vast knowledge of financial services, along with a deep understanding of how these institutions function on a day-to-day basis.
Unnikrishnan has positioned this collaboration as a key element in the future of BFSI innovation. The combination of AI and traditional analytics solutions will enable financial institutions to not only improve their operational efficiencies but also drive business growth through new capabilities like content mining, summarization, and knowledge management.
Meeting the Ethical and Cultural Challenges of AI
As with any transformative technology, AI brings its own set of challenges—particularly around ethics and cultural adoption. Unnikrishnan is acutely aware of the risks posed by AI, especially in an industry as sensitive as financial services. Ethical AI use is a major concern, and Unnikrishnan is at the forefront of conversations around ensuring that AI applications adhere to strict ethical standards.
He understands that trust is a currency in financial services, and mishandling AI could jeopardize the very foundations of that trust. “We can’t ignore the risks,” Unnikrishnan says. “But that doesn’t mean we shy away from innovation. It means we have to be smarter about how we implement AI and more transparent about how it’s used.”
Culturally, too, the integration of AI is no small feat. Many organizations still operate on legacy systems and processes that have been in place for decades. Introducing AI into these environments requires more than just a technological shift. It requires a cultural one.
Unnikrishnan has led these cultural transformations with a steady hand, advocating for a slow but steady integration of AI into the core of business processes. His strategy is clear: focus on small, tangible wins that demonstrate AI’s value, and build momentum from there. By doing so, he has helped BFSI firms overcome the inertia that often holds back innovation.
The Future of AI in BFSI
Looking ahead, Unnikrishnan sees a future where AI is not just an add-on but a fundamental component of the BFSI industry. He predicts that AI will play a major role in reimagining entire value chains and transforming how financial institutions operate.
Unnikrishnan’s leadership is driving this shift. His work with TCS and OpenText has laid the groundwork for AI’s mainstream adoption in financial services, but he knows the journey is far from over. There is much work to be done to ensure that AI is implemented responsibly, ethically, and effectively.
As more financial institutions begin to see the value that AI can bring, Unnikrishnan will continue to be at the forefront, guiding the industry through its next phase of evolution. His leadership is critical in helping the BFSI sector embrace the future while maintaining the trust and security that the industry relies on.
In an industry on the cusp of an AI-driven revolution, Babu Unnikrishnan’s role as a technology leader is clear: he’s not just navigating the future of financial services—he’s building it. His work is reshaping how the BFSI sector thinks about data, AI, and innovation, positioning TCS and its clients for long-term success in a rapidly changing world.
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