Indian fintech companies and banks took giant strides towards the centre-stage in 2018 by leveraging data & AI, social networks, industry collaborations, and open banking to offer innovative products to a population segment that was untapped so far. As per a recent report by NASSCOM, the Indian fintech software market, currently at $1.2bn, is expected to touch $2.4 bn by 2020.
While use of AI and machine learning algorithms will help to predict chances of default as well as restrict fraud to to an extent, companies will need to keep innovating, tweaking their credit and financial models, building in more robust fraud detection mechanisms, early warning systems and stress-testing those to check for weaknesses. In 2019, we could see an increased adoption of biometrics for authentication – whether via fingerprints, retina scan, facial and voice recognition. […]