A report by BCG, IBA, and FICCI highlights the importance of physical branches in fostering customer trust in a diverse nation like India. Banks should transform branches into advisory-led centres and adopt a 'phygital' approach, transforming them into advisory-led centres rather than product pushers. India's bank branches have increased from 60,000 in 1991 to over 150,000 in 2021, while business correspondents have grown from less than 10,000 to over 1.8 million. In India, human primacy is crucial for customer trust, but newer technology like AI and Generative AI can also play a significant role in banks' services. Some lenders in India are already focusing on AI usage in their operations, while others are investing in AI and ensuring compliance with the data protection bill. Private sector lender Axis Bank is using Cloud and Gen AI to offer differentiated services to partners at scale and is building in-house products to gain a competitive advantage.