Skin In The Game: Why Banks Are Taking Stakes In AI Labs

Banks are moving beyond buying AI tools, becoming investors, strategic partners and co-builders with AI startups, particularly with an eye on creating AI-powered experiences for their customers

As AI moves deeper into critical banking workflows, institutions want greater control, customisation and influence over the technology they depend on

After a wave of global banks backing AI labs in the West, India is also beginning to see this shift with HDFC Bank and Canara Bank’s CoRover bet and IDFC FIRST Bank’s collaboration with Sarvam AI

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Rogo, a US-based financial-services AI startup, raised $30 Mn this month. What made this unique was that some of the world’s largest banks, including Barclays, BNP Paribas, Citi, MUFG and Société Générale, invested in this company, even though it has VC backing too. 

Nine global banks are now on Rogo’s cap table, representing nearly $20 Tn in combined assets.

Rogo isn’t an isolated case. Large banks and their venture investment arms are increasingly taking big bets on AI companies. 

Such investments have grown at a compounded........

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