Paytm, an online payments platform in India, is making significant investments in artificial intelligence (AI) to enhance risk detection in financial institutions. The company’s CEO, Vijay Shekhar Sharma, revealed in the annual report for FY23 that Paytm aims to develop an Artificial General Intelligence software stack to assist financial institutions in identifying potential risks and frauds.
Sharma highlighted the vast potential for payment consumers in India, projecting a future with around 500 million payment consumers and approximately 100 million merchants. To capture this opportunity, Paytm is focusing on investing in AI and developing an AI system on a national scale. This system aims to help financial institutions identify risks and fraudulent activities while also safeguarding them against emerging risks associated with advancements in AI technology.
Sharma expressed his belief that India is well-positioned to become a net exporter in payment technology, including software and hardware. He stated that Paytm is determined to take a pioneering role in making this vision a reality. The company aims to enable 500 million Indians to benefit from mainstream economic growth by providing mobile payments and extending various financial services such as loans and insurance.
In addition to its own benefits, Paytm actively supports the government and regulator-initiated Digital Public Infrastructure. Paytm Labs is continuously developing AI and big data functionalities to enhance trust in payments on its platform, both for consumers and merchants.
Looking at India’s digital transformation, Sharma emphasized Paytm’s upcoming innovation in providing modest and reliable mobile credit. This credit offering will meet high standards of credit quality and adhere to regulatory guidelines. Advanced AI capabilities will be crucial for this innovation, and Paytm is proud of its current capabilities and ongoing expansion.
The use of AI in the financial world is gaining popularity due to its strong potential. The Reserve Bank of India recently announced its partnership with Accenture and McKinsey to utilize AI for its projects. These companies will leverage machine learning and advanced analytics to generate supervisory inputs for the RBI.
However, despite the rise of digital banking in India, a study by Accenture revealed that a significant percentage of consumers still prefer having physical bank branches in their neighborhoods. These branches are seen as symbols of stability and accessibility, with many individuals relying on them for assistance with complex financial matters.
Overall, Paytm’s investments in AI for risk detection in financial institutions demonstrate its commitment to providing secure and innovative solutions in the rapidly evolving payment landscape. With India’s growing population of payment consumers and merchants, Paytm aims to play a leading role in driving the country’s digital transformation and becoming a net exporter in payment technology.
Note: This article was produced using artificial intelligence technology.