AI-driven chatbots and virtual assistants provide round-the-clock assistance, microfinance and micro loans, rural banking advancements, and automated investment platforms that make investment opportunities open to a wider spectrum of the population. However, several challenges such as data privacy, regulatory compliance, and skill development must be addressed for a successful transformation.
AI and ML are enabling financial service providers to leverage data and analytics, creating affordable and convenient financial solutions for the underrepresented section of the society. Even individuals in remote and vulnerable areas may now gain access to essential financial resources. These technologies are revolutionising the design and delivery of financial products by aggregating and tailoring them to the unique needs and preferences of low-income households, empowering families and businesses in this segment to firm up their financial resilience and well-being. AI and ML have been playing an extremely important role in achieving this goal with better responses compared to humans. They are being used to identify and target the underserved segments, provide personalised financial products and services, automate processes and minimise frauds. Here is how AI & ML can help realise India’s dream of inclusive financial growth.One of the primary challenges to financial inclusion is the lack of credit history, particularly among the underprivileged.
