LEARNER · GLOBAL
What is RAG (Retrieval-Augmented Generation)? Why banks use it for safer, grounded AI.
RAG is a technique that feeds an LLM external documents (regulatory filings, customer records) *before* generating a response. This 'retrieval' step reduces hallucinations and grounds answers in trusted data—critical for BFSI compliance.
WHY IT MATTERS
Most production BFSI AI deployments rely on RAG to avoid legal/regulatory risk. If you're building an AI agent for loan underwriting or risk reporting, RAG is your foundation.
Source: TechCrunch · 2026-06-21