The integration of AI in banking policy management isn’t just a trend—it’s becoming a necessity for institutions aiming to stay competitive and compliant in an increasingly complex regulatory environment
By Ada Jain
Tejas AI—a pioneering startup founded by Gaurav Agarwal Luhariwala and Bhavesh Tolia in 2025, backed by Y Combinator, seeks to disrupt traditional operations in financial institutions by leveraging groundbreaking AI technologies to transform the sector.
Driven by a vision to revolutionize policy management through artificial intelligence, these founders bring remarkable credentials: Agarwal, a BITS Pilani alumnus who previously scaled Tartan’s revenue eightfold through innovative KYC solutions, and Tolia, who brings deep enterprise AI expertise from global financial powerhouses like Allianz, Deutsche Bank, and Angel One.
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Tejas promises to reshape how financial institutions manage, update, and implement policies, with AI-powered solutions that can potentially save the banking sector upwards of $1 trillion in projected cost savings.
According to Anonymous, a financial research firm, by 2030, traditional financial institutions can shave 22% in costs. This translates to $200 billion in savings in the backend of which $31 billion will be attributed to underwriting and collections systems. In addition to adding the front-end and middle office operations like KYC authentication, the banks’ slice of this massive AI pie represents upwards of $1 trillion in projected cost savings.
With a bold mission to modernize policy management through AI, Tejas AI promises to improve policy updates by 90%, reduce costs by 60%, maintain an impressive 99.9% accuracy in AI-powered risk and credit management suggestions, and provide 24/7 policy monitoring.
According to the founders, banks lose billions in the lag created due to manual updates of policy changes. Offering intelligent policy analysis and hyperlocal insights tailored to the geographic conditions, Tejas claims to inform banks regarding policy decisions and update them within minutes. The startup takes this a step further by allowing banks to simulate these suggestions before implementation.
The company claims that their platform streamlines the entire policy lifecycle, from creation to implementation. Policies need constant manual updating, due to the dynamic regulatory environment due to macroeconomic trends and recently, even social media.
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For example, bank runs, driven by social media, are also an emerging risk to a bank’s financial stability as seen in the case of Silicon Valley bank in the United States. A bank run occurs when customers lose faith in an institution’s ability to look after their money, and large numbers withdraw their deposits all at once. Financial institutions need to address this through media monitoring and engagement. To stay competitive, banks must have a digital transformation plan.
“We are looking for fintechs, NBFCs, Banks, and financial leaders who want to transform risk decisioning with AI,” the founding team of Tejas AI said. The integration of AI in banking policy management isn’t just a trend—it’s becoming a necessity for institutions aiming to stay competitive and compliant in an increasingly complex regulatory environment, allowing banks to scale with confidence.