India's banking sector has taken a step towards AI enabled financial services with the launch of the country's first AI powered phygital banking branch in Guwahati. Inaugurated by Assam Chief Minister Himanta Biswa Sarma, the new Slice Small Finance Bank branch combines physical banking with artificial intelligence driven digital services to improve accessibility, customer experience and financial inclusion.
Located on GS Road in Guwahati, the next generation banking branch integrates AI enabled self service kiosks, paperless cash deposits and withdrawals, and streamlined digital onboarding. The phygital model is designed to blend the convenience of digital banking with the trust and support of a physical branch, allowing customers to complete transactions and access services more efficiently.
Speaking at the inauguration, Sarma said the facility represents another step towards building a more inclusive financial ecosystem for both urban and underserved communities. He added that the investment reflects the type of technology driven development the Assam government has been encouraging and demonstrates the state's readiness to support the future of digital banking in India.
One of the key features of the branch is its ability to provide eligible customers with access to credit directly through the Unified Payments Interface without requiring a separate loan application. According to the Chief Minister, the feature is expected to benefit small business owners, women entrepreneurs and individuals seeking quick access to working capital through their mobile devices. He described the initiative as a practical example of financial inclusion supported by technology.
The bank said the new branch has been designed to make financial services more accessible by combining responsible lending, digital payments and savings products with AI driven customer interactions. Through its expanding physical presence and digital infrastructure, Slice aims to extend banking services to individuals and small businesses that have traditionally had limited access to modern financial products.
The launch comes at a time when financial institutions across India are increasing investments in artificial intelligence to improve customer engagement, automate routine processes and enhance operational efficiency. AI powered virtual assistants, automated verification systems and intelligent fraud detection tools are becoming increasingly common as banks look to deliver faster and more personalised services while maintaining security and regulatory compliance.
Industry observers view phygital banking as an emerging model that combines digital convenience with in person customer support, particularly for users who still value branch based services. By integrating AI with traditional banking infrastructure, financial institutions aim to simplify onboarding, reduce paperwork and improve access to banking products without completely replacing physical interactions.
With the inauguration of the AI powered phygital banking branch, Guwahati joins a growing list of Indian cities witnessing technology led financial innovation. The initiative reflects the broader shift within the banking sector towards AI enabled services while reinforcing the role of digital infrastructure in expanding financial inclusion and improving customer access to banking solutions across different segments of society.