Banks Started Using AI To Find Best-Suited Credit Card For You?

Indian banks are starting to use AI to study spending behaviour, sharpen credit card targeting and push card offers that look more suited to each customer.

Choosing a credit card in India is getting more complicated. Cashback cards, travel cards, fuel cards, co-branded cards and now UPI-linked cards are all fighting for space. At the same time, banks are under pressure to improve conversions and reduce waste on broad marketing. 

That is where AI is entering the picture. Instead of pushing the same card to everyone, banks and card-tech firms are beginning to use spending data, lifecycle signals and customer behaviour to decide which product should be shown first. The shift is still early, but it is visible now.

How AI Is Being Used To Match Customers With Cards

A clear example came on 10 September 2025, when YES Bank tied up with Hyperface to roll out digital-first, hyper-personalised credit card solutions. Mint reported that the platform would support portfolio automation, end-to-end lifecycle management and faster co-brand integration. IBS Intelligence reported the same day that the partnership was aimed at more seamless and technology-driven card experiences.

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This trend fits a bigger payments story too. PwC India said in The Indian Payments Handbook 2024-2029, published in August 2024, that digital payments volume grew 42% YoY in FY24. The report also said UPI transaction volume grew 57% YoY, crossed 131 bn in FY24, and now accounts for over 80% of retail digital payments. It added that credit cards contribute 85% of card-industry revenues.
 

That is why banks are trying to narrow the gap between a customer’s spending pattern and the card being pitched to them.

How The Shift Built Up Over Time?

This did not begin with one bank tie-up. On 24 July 2025, Hyperface launched AI Labs, describing it as a unit built specifically for the credit card ecosystem. The company said general-purpose AI often misses the context behind card transactions, rewards and servicing, while specialised tools can help decode customer behaviour better.

The market has also become more segmented. ET Wealth reported on 10 March 2026 that issuers including Kiwi, HDFC Bank, IDFC FIRST Bank and Axis Bank are offering UPI-enabled credit cards with varied reward structures. Separately, 

ET Wealth reported on 3 March 2026 that issuers such as SBI Card, HDFC Bank and ICICI Bank have been tightening reward rules and thresholds. Axis Bank’s own card page says card choice depends on spending pattern. LoansJagat’s 21 December 2025 guide also says users should pick cards according to lifestyle and spending habits.

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Banks revised reward rules and thresholds in 2026

Consumers advised to match cards with spending habits

Guidance focused on choosing cards based on lifestyle and spending pattern

Put together, these moves show why AI-led card matching is getting serious attention in India’s fast-changing card market.

What Banks And Card-Tech Firms Are Saying?
 

YES Bank’s Anil Singh, Country Head, Credit Cards and Merchant Acquiring, said the tie-up with Hyperface would make credit card engagement more seamless, secure and user-friendly. Hyperface CEO Ramanathan RV said the industry needs AI that understands the “why” behind customer behaviour, not just raw transaction data.