Let us take an everyday example. You open a mobile app to apply for a personal loan from a bank or an NBFC. You are midway through the form and stumble upon a question that confuses you. Earlier, you would have waited to speak to a human agent. That wait often meant dropped applications. Now, there is a better way to help the customer right away. An embedded AI agent steps in and keeps the process going.
These AI agents sit inside the app or website and talk to users through voice or chat. They understand the exact page the user is on, what they are trying to do, and what is blocking their progress. They speak in local languages and respond instantly, much like a real human would. This is not about replacing customer support. It is about helping banks and fintechs build faster and smoother digital journeys where users do not get stuck waiting.
They solve two big problems. One, users get help without delay. Two, banks do not need to build large support teams for routine issues. In an industry where growth is digital and customers expect speed, these agents make a measurable difference.
What Makes This Relevant Now, in 2025?
India’s digital payments are growing at a record pace. According to the Reserve Bank of India, UPI handled 185.8 billion transactions in 2024–25, up 41% over the previous year. In value, that is ₹261 lakh crore. Digital is no longer an option. It is how most people manage their money.
Mobile sits at the center of this shift. Forrester’s 2023 Asia Pacific survey says 87% of online Indian adults want to do all their banking through their smartphone. That is the highest percentage across the region. When most users are banking on their phones, the help they need also has to live within that screen.
This is where embedded AI agents really come into play. They sit right inside the app and guide users through everything, whether it’s picking a savings plan, uploading KYC documents or checking EMI options, without breaking the flow.
Since they are present from the first interaction, they pick up key details and customer context that often get missed when conversations switch hands. That context then carries forward into underwriting, collections, cross-selling, and upselling, keeping the entire experience connected and effortless.
What Sets Them Apart from AI-Powered Telephony
There is some confusion between embedded agents and AI calling systems. The difference is clear when you look at how each works.
AI calling solutions usually handle outbound or inbound phone calls. They remind customers about payments, ask survey questions, or follow up on leads. These are mostly short, scripted conversations.
Embedded agents, on the other hand, live inside apps and websites. They do not make calls. Instead, they help users while they are using the platform. They understand what the user is doing in real time and give the right response without asking the user to start over. This makes the entire journey smoother.
Designed to Scale Without Compromise
Digital services in BFSI are growing at 30% every year. More than 95% of banking transactions are now done digitally. But this growth brings pressure on backend teams. Customer queries go up. Onboarding requests multiply. Hiring more people to handle this is not always practical.
This is also where embedded agents help. They allow businesses to grow without having to expand human support teams at the same rate. An agent built into the onboarding journey can make the process faster, cleaner, and more accurate. It can ensure documents are uploaded correctly, explain steps to the user, and alert them if something is missing. All this without waiting.
Costs also come down. As per PwC, 34% of fintech employees in India have under two years of experience. Around 60% have less than five. High attrition and a lack of trained support staff can affect quality. An embedded agent works the same way every time. It does not depend on shift changes or training cycles.
Looking Ahead
IDC expects global spending on AI to cross $512 billion by 2027. That is twice what it was in 2024. Closer home, PwC estimates India’s fintech market could grow to USD 150 billion by the end of 2025. The message is clear. Smart automation is where investments are heading.
But using AI well means going beyond chatbots. It means rethinking how products are structured, how support flows work, and how customer journeys are designed. Sales, onboarding, and help should not be three separate things. They should feel like one continuous experience, and embedded agents will make that possible.
Also Read: Why India’s Next Credit Revolution Depends on How We Handle Loan Collections Today
Views expressed by: Ashutosh Prakash Singh, Co-founder & CEO, RevRag.AI
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