Transforming HR with AI: Poonawalla Fincorp and IIT Bombay’s Pioneering Collaboration

Poonawalla Fincorp Limited, a prominent non-banking financial company (NBFC), has taken a major step toward digital transformation by integrating Artificial Intelligence (AI) into its Human Resources (HR) Strategic Business Unit. This innovative approach, backed by a pioneering collaboration with IIT Bombay, is setting new benchmarks in the financial services industry for operational excellence and forward-looking talent management.

Redefining HR with Artificial Intelligence

Adopting a phased implementation strategy, Poonawalla Fincorp has significantly enhanced its HR functions by embedding AI-powered tools across critical processes. One of the most remarkable outcomes is the drastic reduction in the time required to issue job offers—from an average of ten days to under one. This 90% improvement demonstrates the power of automation and data analytics in transforming recruitment timelines and cutting costs.

Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, highlighted this initiative as a core element of the company’s transformation roadmap. “This year marks a turning point for Poonawalla Fincorp as we scale our efforts to build a tech-driven, customer-centric ecosystem,” he noted. “Empowering our workforce with advanced capabilities is key to this journey. The integration of AI in HR is just the beginning of our larger plan to embed AI across compliance, customer service, and all areas of operations.”

Academic Partnership with IIT Bombay

A cornerstone of this transformation is Poonawalla Fincorp’s strategic alliance with IIT Bombay, one of India’s leading research institutions in AI and machine learning. This collaboration bridges the gap between academic theory and business practice, producing solutions tailored to real-world challenges in financial services.

Dr. Pushpak Bhattacharyya, from IIT Bombay’s Department of Computer Science and Engineering, emphasized the value of this partnership. “AI is playing a transformative role in reshaping financial services. Poonawalla Fincorp’s proactive approach to leveraging AI sets a strong example of how industry and academia can come together to drive innovation. Starting with HR, we are working to create scalable models that can be extended to other domains as well.”

Revolutionizing HR Operations with AI Tools

With AI now embedded in its HR processes, Poonawalla Fincorp has streamlined its recruitment and hiring practices. Several core functions have been enhanced, delivering faster results and improving both candidate and recruiter experiences.

Smart Candidate Matching - Using intelligent algorithms, AI can swiftly match resumes with job descriptions, helping recruiters focus on top candidates while eliminating irrelevant profiles. This saves time and increases the quality of hires.

Automated Document Verification - AI systems now handle the verification of candidate documents, significantly reducing manual errors and speeding up the review process—particularly useful in high-volume hiring situations.

Streamlined Candidate Management - Routine tasks such as follow-ups, shortlisting, and tracking applicant status are now automated. Recruiters are involved at key decision points, allowing for a more efficient and focused hiring workflow.

AI-Powered Job Posting - Creating and publishing job listings is now fully automated. AI ensures job descriptions are accurate and consistently shared across recruitment platforms, enhancing visibility while reducing manual effort.

Real-Time Screening and Evaluation - AI tools evaluate qualifications and candidate fit in real-time, allowing hiring managers to make quicker, data-backed decisions and reducing the risk of delays in the recruitment cycle.

Enhancing the Employee Experience

Beyond recruitment, Poonawalla Fincorp is also leveraging AI to improve the overall employee experience. The HR department is currently developing an AI chatbot accessible through WhatsApp to assist employees with everyday queries regarding payroll, leave, company policies, and benefits. This real-time support tool reduces the dependency on manual HR interventions and improves service delivery for employees.

Another crucial benefit of AI integration is its role in promoting fair and unbiased hiring. By using data-driven assessments to evaluate candidates’ cognitive and technical abilities, the system minimizes unconscious bias, fosters transparency, and ensures that every applicant receives equal consideration.

Looking Ahead: AI Across the Enterprise

The integration of AI into HR is just one aspect of Poonawalla Fincorp’s broader vision for digital transformation. The company plans to expand its AI capabilities into compliance, customer support, and operational efficiency as it scales into new business areas and distribution networks.

The recent appointment of Salil Hajarnis as Chief Technology Officer underscores the organization’s commitment to this future-forward strategy. With his leadership, Poonawalla Fincorp aims to drive innovation, streamline operations, and elevate customer experiences through intelligent digital solutions.

Through its AI-first approach and strategic collaborations, Poonawalla Fincorp is not only reshaping HR but also positioning itself as a leader in technology-driven growth within the financial services landscape.