Transforming finance: Here’s how AI is leading the charge

Artificial intelligence (AI) is emerging as a game changer in the rapidly evolving landscape of financial services. At YourStory's Tech Leaders’ Conclave, Ankur Pal, Chief Data Scientist, Aplazo, shared insights on how AI is revolutionising the industry.

Pal began by introducing Aplazo, a company with a mission to empower financial access and opportunity for customers by connecting merchants with fair and transparent solutions. The company aims to tackle the significant problem of financial inclusion, particularly in developing countries where credit card penetration remains as low as 10%. This low penetration indicates that a vast majority of consumers are excluded from the financial economy, which Aplazo seeks to address through solutions like the Buy Now Pay Later (BNPL) platform.

AI as a game changer in fintech

Pal's journey with AI began over a decade ago when he was working on neural networks during his engineering studies. He highlighted AI's potential as a transformative technology in the fintech space, emphasising its role in providing financial inclusion and improving customer experiences. By leveraging AI, companies can create more personalised and efficient financial products, reducing friction points for consumers and enhancing operational efficiency for institutions.

AI also plays a crucial role in enhancing the operational efficiency of financial institutes. Pal explained how AI is being used to improve decision-making processes, reduce fraud, and enhance customer service. For instance, AI-driven solutions can process vast amounts of data in real time, enabling financial institutes to detect and prevent fraudulent activities more effectively. Moreover, AI can automate routine tasks, allowing financial professionals to focus on more strategic initiatives.

Overcoming financial inclusion barriers

One of the critical issues discussed was financial inclusion. Despite significant progress, a large portion of the population in developing countries remains unbanked or underbanked. Pal pointed out that in many developing countries, even though a high percentage of the population has bank accounts, the penetration of financial products remains low. AI can help bridge this gap by providing tailored financial solutions that meet the specific needs of these underserved populations.

The conversation also touched on the importance of real-time decision-making in the financial sector. Pal noted that traditional batch processing models are being replaced by near real-time AI capabilities. Financial institutions are now investing in event streaming infrastructure and machine learning operations (MLOps) stacks to enable near real-time data processing and decision-making. This shift is crucial for managing the high volume of transactions and ensuring high availability and low latency in fintech applications.

Leadership and skill sets for AI in fintech

As a leader in the AI space, Pal shared his perspective on the skills required for building successful AI teams. He stressed the importance of adaptability and the ability to learn new things, given the fast-paced nature of AI development. He also highlighted the need for a deep understanding of both technology and business to create AI solutions that deliver real value. Pal believes that while AI will transform job roles, it will also create new opportunities, and leaders must focus on fostering a culture of continuous learning and innovation.