Alok Kumar Agarwal from Alankit Discusses the Role of AI and Machine Learning
AI and machine learning (ML) are becoming a big part of India’s financial industry, including banking, insurance, lending, and wealth management. These technologies help financial institutions quickly analyze large amounts of data, providing useful insights to make better decisions and improve customer experiences.
In fraud detection, AI algorithms carefully examine transaction patterns to quickly spot any unusual activity that might indicate fraud. “This proactive approach not only reduces financial losses but also builds consumer trust in digital transactions,” says Mr. Alok Kumar Agarwal. AI-driven credit scoring models have made it easier for more people to get credit. These models allow lenders to evaluate someone's creditworthiness based on a detailed analysis of their financial behavior and socio-economic factors.
Indian fintech startups are leading the way in using AI and ML to tackle common issues in the financial sector. “Top digital payment platforms in India use AI algorithms for fraud detection and prevention. By using advanced pattern recognition and anomaly detection techniques, these startups protect their large user bases from fraudulent transactions, ensuring their platforms remain secure,” says Alok Kumar Agarwal Alankit. FinTech startups also use ML algorithms to analyze non-traditional data sources, such as mobile usage patterns and social media behavior, to evaluate the creditworthiness of people without formal credit histories. This approach helps extend financial services to underserved populations, promoting financial inclusion and economic empowerment.