Indian fintech startups are leading the way in using AI and ML to tackle common challenges in the financial sector. "Top digital payment platforms in India use AI to detect and prevent fraud. With advanced pattern recognition and anomaly detection, these startups protect their users from fraudulent transactions, ensuring their platforms stay secure," says Alok Kumar Agarwal Alankit. By using ML, fintech startups can analyze unusual data sources like mobile usage patterns and social media behavior to evaluate the creditworthiness of people without formal credit histories. This inclusive approach helps provide financial services to underserved populations, promoting financial inclusion and economic empowerment.
However, there are ethical concerns about using AI in financial services. The algorithms can be biased due to the data used for training, potentially worsening existing inequalities in financial access. Alok Kumar Agarwal from Alankit stresses, "It's crucial to ensure algorithmic transparency and fairness to reduce the risk of bias. I strongly support rigorous oversight and regulatory frameworks to maintain ethical standards in AI-driven financial services."