[Exclusive Interview] This Digital Lending Platform Deploys AI-Based Deep Learning For Serving 'Next Half Billion’ Segment

Recently, we interacted with Ms. Ria Ghosh, Data Scientist at MyShubhLife – India’s largest embedded credit platform, and one of the most innovative digital lending apps for merchants and salaried professionals.

Here are the interview highlights:

1. How has the adoption of AI and data science impacted the growth and competitiveness of fintech companies in India?

Fintech companies have always been open to exploring the latest technology available. Ever since Covid, there has been a shift from the traditional space where companies are no longer holding back from leveraging the power of AI and data-science driven solutions. Most business decisions are taken after a thorough analysis of data. Using dta science backed models to assess the credit risk of a customer during loan disbursal leads to a minimization of losses. A significant benefit of employing AI and data science in Fintech is to manage fraudulent transactions by being able to identify abnormalities and specific patterns without requiring human interaction. Common procedures like Know Your Customer (KYC) verifications and other Anti-Money Laundering (AML) requirements have already been automated through technology. These contribute to a smarter, quicker and efficient workflow, thereby leading not only to business growth and increased revenues, but also enhanced customer experience.

2. What emerging trends, technologies, and future innovations are shaping the data science landscape for fintech companies like MyShubhLife in India?

To leverage the benefits of data science, fintechs are currently using a host of machine learning based methods and tools. Chatbots and AI based virtual assistants are among the most popular applications of AI ML in this industry. Techniques like predictive modelling and inferential statistics are being used to make predictions based on available data. At MyShubhLife, not only do we make use of the traditional ML techniques, but we are also exploring advanced, state-of-the-art deep learning and time-series models to further make accurate predictions. Our data science team has drawn on the power of date to put in place innovative models like smart and automated underwriting, advanced ML based credit risk assessment models and, a data-driven collections approach. By building and developing our own innovative, state-of-the-art in-house models and by automating routine tasks, we have reduced our dependencies. We are also continuously working on using AI algorithms to improve our customer experience.

3. What measures does MyShubhLife take to ensure that its data science practices comply with regulatory requirements and industry standards in the Indian fintech space?

In the fintech industry we work with a large amount of user data. Privacy and Security are a major concern. At MyShubhLife we have very stringent data privacy and security measure in place, to prevent any misuse of customer data. We are fully compliant with the data privacy and security requirements of the various regulatory bodies for fintech in India like RBI and SEBI. Regular auditing also ensures that there is transparency in how we deal with data. The cloud service that MyShubhLife uses is the largest in the world and is compliant with internationally recognized accreditations, thereby providing security to our user data.

4. How does data science enable fintech companies in India to personalize financial products and services for customers?

Data science enables companies to draw insights from raw data. Based on these insights, fintechs can create products tailored according to different segments of their customers. By analysing spending patterns, financial goals, investment history etc, fintechs can develop specific marketing strategies and tailored products that cater to the customer’s requirements. At MyShubhLife, we follow a data-science driven approach towards loan collections. Based on an individual customer’s repayment performance, we decide on a collection strategy for them. This helps us in personalizing our interactions with our customers as well as optimizing our efforts.

5. Can you share insights into successful collaborations between traditional financial institutions and fintech companies in India that harness AI and data science for mutual benefit?

Fintechs and traditional financial institutions like banks are two entities that complement each other in providing financial inclusion to millions of individuals. While traditional institutions have a conventional approach, fintechs are known for their quick, easy and hassle-free solutions. Traditional institutions can leverage a fintech’s expertise in technology and its extensive use of data science and AI models without having to build such a setup from scratch. Fintechs on the other hand can tap into the large and loyal customer base of a traditional institution as well as get capital from them. The partnerships between ICICI bank and NiYo, Kotak Mahindra Bank- Pine Labs, Federal Bank- CredAvenue, Axis Bank- Ezetap and, State Bank of India- U Gro are recent examples of such collaborations which can benefit both.