Rajesh Unde on Generative AI in Finance: Why On-Premise Security Still Wins
- 15th September 2025
- 01:00:00 PM
- 3 min read
Summary
Generative AI is sweeping through finance, but the real battle isn’t adoption — it’s deployment. Cloud offers scale and speed, yet compliance firewalls still push sensitive workloads on-premise. PL Capital’s CTO, Rajesh Unde, explains why hybrid AI is the only sustainable path forward — where innovation grows, but regulatory trust remains the ultimate currency.
Mumbai | September 15
The rise of Generative AI (GenAI) is reshaping how banks, brokers and asset managers operate. But in India’s tightly regulated financial sector, the question is not whether to adopt AI — it is where to deploy it. Should critical workloads run on the cloud for agility, or remain on-premise under stricter compliance safeguards?
Rajesh Unde, Group CTO at PL Capital, believes the choice is clear when sensitive data is involved.
“Robust security features in deploying Gen AI on cloud are undeniable, but regulatory complexity often leads me to prefer on-prem for the most sensitive workloads,” he says.
The Compliance Imperative
For financial institutions, the regulatory framework set by SEBI and the Reserve Bank of India leaves little margin for error. Rules on data privacy, localization and audit trails create strict guardrails. Workloads that involve KYC records, personal identifiers or transaction flows demand the highest protection.
Unde explains that while cloud AI platforms deliver unmatched speed and efficiency, PL Capital views on-prem deployment as non-negotiable for regulated datasets. “Innovation cannot come at the cost of compliance,” he notes.
PL Capital’s Hybrid Playbook
Rajesh Unde stresses that the real answer is not ‘cloud versus on-premise,’ but hybrid deployment.
At PL Capital, less sensitive functions — such as analytics, reporting and modelling — are placed in the cloud, where scalability adds the most value. But workloads that touch customer data, regulated systems or mission-critical operations are deliberately kept on-premise.
“Innovation must go hand in hand with governance,” Unde explains. “That’s why we see hybrid models as the most practical and sustainable path forward.”
This approach reflects PL Capital’s technology-first strategy: pursuing digital transformation while protecting trust — the cornerstone of financial services.
Industry at a Crossroads
The debate comes as Indian regulators sharpen their focus on AI usage. SEBI has floated proposals for responsible AI and machine learning in securities markets, emphasising oversight and governance. The RBI has also flagged financial stability risks tied to over-reliance on third-party cloud vendors.
Unde says these concerns validate PL Capital’s position: cloud AI will accelerate growth, but on-prem AI will preserve compliance. The firms that successfully combine both will be the ones that endure.
Outlook: Trust as the True Differentiator
Looking ahead, Unde argues that leadership in India’s AI transition will not belong to those who adopt the fastest, but to those who deploy the most responsibly.
For PL Capital, the future lies in hybrid AI ecosystems that give businesses the agility of the cloud while anchoring sensitive data on-premise. It is a model designed to keep innovation and compliance in balance.
👉 To read Rajesh Unde’s full feature and insights, click the link here
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
