Scribd Logo
Upload

Welcome to Scribd!

  • 66 views

    The Use of Artificial Intelligence

    Uploaded by

    Angelo Baker
    The document discusses how artificial intelligence can help overcome barriers to financial inclusion by assisting low-income and remote users in India. Specifically, AI algorithms are being used by Indian FinTech companies for credit risk analysis, underwriting decisions, and fraud detection to provide financial services to underserved populations and areas. This helps address longstanding issues of a lack of income/credit records and the high costs of serving remote communities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    The Use of Artificial Intelligence

    Uploaded by

    Angelo Baker
    66 views1 page
    The document discusses how artificial intelligence can help overcome barriers to financial inclusion by assisting low-income and remote users in India. Specifically, AI algorithms are being used by Indian FinTech companies for credit risk analysis, underwriting decisions, and fraud detection to provide financial services to underserved populations and areas. This helps address longstanding issues of a lack of income/credit records and the high costs of serving remote communities.

    Original Description:

    desc on use of AI

    Original Title

    The use of Artificial Intelligence

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses how artificial intelligence can help overcome barriers to financial inclusion by assisting low-income and remote users in India. Specifically, AI algorithms are being used by Indian FinTech companies for credit risk analysis, underwriting decisions, and fraud detection to provide financial services to underserved populations and areas. This helps address longstanding issues of a lack of income/credit records and the high costs of serving remote communities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    66 views1 page

    The Use of Artificial Intelligence

    Uploaded by

    Angelo Baker
    The document discusses how artificial intelligence can help overcome barriers to financial inclusion by assisting low-income and remote users in India. Specifically, AI algorithms are being used by Indian FinTech companies for credit risk analysis, underwriting decisions, and fraud detection to provide financial services to underserved populations and areas. This helps address longstanding issues of a lack of income/credit records and the high costs of serving remote communities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 1

    The use of Artificial Intelligence (AI) in finance promises to help solve many long-standing barriers to

    financial inclusion. The formal financial sector has been beyond reach for low-income users and remotely
    located users in India for numerous reasons. As we battle a global pandemic which could further isolate
    people excluded from formal finance or those who are geographically dispersed, any methods that can
    assist in overcoming these barriers become even more critical to understand. Some of the most enduring
    barriers to accessing formal financial services for low-income users include a lack of formal records of
    income and expenditure, of proper credit history, or the relatively high unit cost to provide services at the
    last mile 

    In 1956, a group of experts at the Dartmouth Summer Research Project convened to assess if it were
    possible to make a machine simulate every aspect of human intelligence and learning. They coined the
    term “Artificial Intelligence” (AI) referring to machines that can “use language, form abstractions and
    concepts, solve kinds of problems now reserved for humans, and improve themselves” (McCarthy et al.,
    1955).
    More recently, the Financial Stability Board’s (FSB) definition conceptualised AI as IT systems that can
    display intelligence to ask questions, discover and test hypotheses, and make decisions automatically based
    on advanced analytics by operating on extensive data sets (Financial Stability Board, 2017).
    These definitions reveal the wide range of applications and processes that can be encompassed within the
    term AI. A useful categorisation of AI that aids this analysis is into three types based on the degree of
    intelligence it can display:
    a. Artificial Super Intelligence, where computers have surpassed human intelligence in all domains.
    b. Artificial General Intelligence, where computers are as intelligent as humans in all domains.
    c. Artificial Narrow Intelligence (ANI), where computers can show human-like intelligence in narrow
    domains defined by a human programmer (Marda, 2018).
    Most of the AI that is in use today demonstrates narrow intelligence where the algorithms [1] use different
    computing and statistical methods to intuitively detect and learn patterns in training data and enhance their
    own performance. This includes machine-learning (ML) algorithms which use large amounts of training
    data to recognise patterns (Surden, 2014), and more recent developments like deep learning and natural
    language processing that are based on similar but more complex pattern recognition, programming and
    automation methods (Taulli, 2019).
    Given this landscape and the current state of play, the AI mentioned in this post largely relate to artificial
    narrow intelligence.

    Artificial intelligence and credit in India


    Indian FinTechs have quickly adopted AI algorithms in their business processes. Many FinTech providers
    like Capital Float, Flexiloans and Lendingkart are using AI in their user-facing activities for a variety of
    purposes including risk analysis, credit underwriting, providing wealth management advice and fraud
    detection (Agarwal, 2019a).
    Our review of digital credit lenders revealed that many digital credit firms in particular claim to use AI
    algorithms for risk-modelling and credit underwriting decisions. This review is based on our analysis of
    websites, news reports and research reports relating to the use of AI in lending in India. Within the Indian
    landscape, these news reports and articles suggest that FinTech providers in India appear to be using AI in
    their credit lending processes to:

    You might also like