The ever changing fintech landscape is an arena for opportunities and threats as well. India is at a threshold of clutching the fintech phenomena and grasping all the benefits that come with it. While that seems like an ideal scenario – there are certain underlying concerns that need addressing too. Keeping in mind the pace at which fintech is penetrating in rural and urban India, the industry is faced with dual challenges in developing the infrastructure at different paces considering the area/ region of operation.
With cybersecurity dialogues circulating the market, frauds committed in the process might seem like a problem that needs to be attended to. The constant rise in fraudulent attacks on the fintech entities, mostly witnessed in the form of cyber security and identity theft are concerning. An advice for most fintech entities would be to engage AI and reap the benefits as much as possible to deal with the issue.
Benefits of fraud detection in fintech
Fraud detection, simply put, is employing AI and machine learning to detect fraudulent activities amongst large data sets. These are continuous learning models, adapting over time. One of the most valuable benefits of deploying fraud detection is to earn the trust of the consumers. When transactions are conducted with proper security measures, and when the users experience such measures being taken for their safety – there are high chances of winning their loyalty towards the company.
AI can assist in multiple ways to attain such outcomes such as proactive detection of fraudulent activities and suspicious activities and also deploying various risk assessment measures through tools undertaken during any online transaction. AI tools are capable of processing massive amounts of databases and analyse the outcomes. This provides the company with trend reports – which can then be utilised to formulate strategies, safeguarding against potential threats.
AI fraud detection tools are automated and therefore it reduces the risk of manual errors. The fraud analytics tool which uses big data tactics increases the speed to detect any fraudulent and potentially fraudulent activities & curbs them immediately. It overviews all financial transactions, from its commence to its completion. This is effective on multiple fronts such as credit card fraud, fake claims, embezzlements etc. It serves as an advanced security protection tool, safeguarding data and the monetary possession of both the company and the customer.
How AI serves as one of the best tools in fintech fraud detection?
AI and machine learning assure seamless and accurate processing of massive amounts of data. The outcomes detected contain valuable trends which can help detect and potentially disarm any fraud attacks/ alarm a customer before any online transaction. On the fly analysis helps swift action and employs necessary measures to avoid major losses. Machine learning tools are capable of automatic learning and training on the go as they process more and more data. The unmatched efficiency makes AI an even more reliable tool when it comes to result based outcomes, with its real time action model.
AI systems are resilient to changes and are capable of countering any unexpected changes. It serves as a governing system, ensuring continuity and seamless experience for the company and the consumer. AI powered fraud detection tools provide real time solutions that are accurate & provide excellent customer service, compelling repeated customer visitations & queries.
The Indian fintech industry is at a junction enabling growth & innovation to solve the undeniable problems pertaining to digital fraud & offer better solutions to increase the accessibility & adaptability rate within the customers. Investing in deep-tech solutions such as AI can ensure a multi-level progress making India the next destination for Global Fintech Opportunities.
Article Contributed by Mr. Praveen Paulose – MD & CEO, Celusion Technologies
