Alok Kumar Agarwal of Alankit Examines AI's Impact on India's Financial Sector
Indian fintech startups are leading the way in using AI and ML to tackle major challenges in the financial sector. "Top digital payment platforms in India use AI algorithms to detect and prevent fraud," says Alok Kumar Agarwal. "By recognizing patterns and spotting anomalies, these startups protect their large user base from fraudulent transactions and ensure their platform's security."
FinTech startups are also using ML algorithms to analyze unconventional data sources, such as mobile usage and social media behavior, to determine the creditworthiness of people without formal credit histories. This approach expands financial access to underserved populations, promoting financial inclusion and economic empowerment.
However, there are ethical concerns with AI in financial services. The algorithms can reflect biases present in the training data, potentially worsening existing inequalities in financial access. Alok Kumar Agarwal emphasizes the importance of transparency and fairness in these algorithms. "It's crucial to have strict oversight and regulations to maintain ethical standards in AI-driven financial services," he says.