Impact of AI on the Fintech Industry

Artificial intelligence is no longer just an imagination, its reality and we are already surrounded by technology in many facets of our daily lives. AI is enabling industries to scale greater heights, the same way it is helping Fintech Industry to address and solve human error and enhance the overall efficiency.

AI is empowering Fintech to make their service seamless, but what other impacts it can bring? To understand the same, we discussed with Satheesh Vattekkat, CTO, MoneyTap.

Quick approval

Based on the intention of the customer, models can be built to fast track manual backend processes for loan approval. First come first served mode of working can make you lose your potentially best customers because they are in the same queue as everyone else.

Underwriting

Fintech still needs a decent quantum of documents to be reviewed in various processes. Optical character recognition (OCR), face detection algorithms, and fuzzy match to automatically verify customer provided information with KYC documents within seconds.

Identification of forged documents

Assessing Creditworthiness

- Identifying customers' income information via billing and repayment patterns.

- Assess the credit risk of customers and design optimum interest rate and credit limit.

Customization

- For proactively directing right offers to right customers, and to make tailor-made offers minimizing risk and maximizing acceptance potentials, rather than a one size fits all approach.

Customer service

- Chatbot for customer support.

- Dynamically updating FAQs based on historical customer questions.

Anomaly detection

- One lesser used area in AI/ML that is getting increasingly popular is anomaly detection. For example - "are we seeing more customers/transactions of a particular kind today than on the same day 3 weeks back?" This is particularly useful during holidays or rainy season across years.

Fraud detection

- Predictive Modelling based on past consumer behavior helps in identifying potentially fraudulent transactions.