India’s First AI-Powered Phygital Bank Branch Opens
Assam Chief Minister Himanta Biswa Sarma has inaugurated India’s first AI-powered “phygital” banking branch of Slice Small Finance Bank at GS Road in Guwahati. The branch combines physical banking infrastructure with digital and artificial intelligence-enabled services, with the stated objective of making banking more accessible and inclusive.
The next-generation branch integrates AI-enabled self-service kiosks, paperless cash deposits and withdrawals, and simplified digital onboarding. The model is designed to combine the accessibility of a physical branch with the convenience of digital banking.
Speaking at the inauguration, the Assam Chief Minister said the digitally enabled branch represents a step towards building a more inclusive financial ecosystem for both urban and underserved communities. He also highlighted the role of innovation-driven development and the collaboration between the Assam government and Slice Small Finance Bank.
The branch is also expected to expand access to credit, savings and payment solutions for individuals and small businesses, particularly customers with limited access to modern banking services.
The phygital model represents a different approach from simply replacing physical branches with digital channels. It combines technology-enabled self-service with a physical banking presence, potentially allowing customers to access modern digital services while retaining a branch-based touchpoint.
For the banking sector, the development demonstrates how artificial intelligence is moving beyond back-office applications and into the customer-facing branch environment. AI-enabled kiosks and paperless processes can potentially reduce manual intervention and simplify routine transactions.
The model also has relevance for financial inclusion. Customers who may face barriers to fully digital banking can continue to access a physical location while using technology-enabled services.
For banks, however, the wider adoption of AI-powered branches will also require attention to cybersecurity, data protection, system availability and customer authentication. As more banking functions become technology-dependent, operational resilience will remain an important consideration.
The Guwahati launch therefore represents an emerging model for Indian banking in which physical access, digital services and artificial intelligence operate together rather than as separate channels.
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