With the growing economy we have seen immense growth in the Digital Payments Industry in the last 5 years in India. New technology and avenues in Payments, Lending and Investment have grown. From a cash economy we are now moving to a Cashless Economy.
With so much data now available with Digital Trails Artificial Intelligence has started playing a major role in the Financial Industry in understanding consumer behavior, Credit Decisioning, Investments and Risk Management as well. While Banks and Financial Institutions are using this data to make the life of consumers easier and run the business efficiently, consumers are also now getting solutions based on AI.
How does it help a consumer?
Today an average person uses multiple money in multiple ways. They may use it in the form of Payments via Instruments like Cash, Wallet, UPI, Credit Card, Debit Card, Gift Card, Net Banking etc. Or they Invest money in Fixed Deposits, Recurring Deposits, Stock Trading, Crypto Currency, Mutual Funds etc. There is a trail of transactions.
An AI can understand the consumer behavior specific to him/her depending on the transactions done. It provides detailed information to the consumer regarding his spends based on which he can plan his investment strategy.
Few data points and benefits of using AI for consumer are below:
- Analyze the spending pattern
- Understand Income/Debt Ratio
- Work on your credit score
- Plan your investment be decreasing expenses based on the data
Today most of the banks are offering these services to its consumers to understand where they have been using their earnings. This improved the financial literacy of the customer as well. While at the same time banks and Financial Institutions are also using this data to offer customised products to its customers. For Ex- Pre-Approved Auto Loan, Credit Cards, Personal loans within 10 mins. This has made customer on-boarding much easier than early days of the application process which used to take 10-15 days.
Overall if consumers today use Artificial intelligence to analyse their spending, they can not just save money but also make money by investing at right places, and also be credit worthy enough to get loans from Financial Institutions whenever they plan to take Home Loans, Car loans, Personal loans and much more.