Tag: Digital Financial Inclusion

In the first blog of this series of two, we break down (i) the Committee’s methodology, (ii) key insights on the current state of AI adoption, (iii) FREE AI Framework and (iv) its recommendations.

This blog is based on the recent uptake in conversations on the reformation of the know-your-customer (KYC) process in the financial sector. We find the periodicity of the current KYC system to be of concern for various reasons. The periodic updates of KYC present a burden on the customer to validate themselves every few years, failing which they are at risk of being excluded from the financial system.

Fairness, explainability and human-in-the-loop principle are vital elements of Responsible AI

By studying people’s instinctive, unguided ‘trust-decisions’, we hope to uncover their mental models of trust. More specifically, we aim to (i) articulate the expectations that customers have of trustworthy lenders, (ii) help lenders design their products in a manner consistent with the customer’s expectations, and (iii) translate these principle-level expectations into processes that lenders may adopt in their customer service to become trustworthy.

This Whitepaper unpacks what RTAI would mean in the context of digital lending. While the term Responsible AI has been adequately conceptualized in academia and elsewhere, it still needs to be coherently contextualized to specific domains.

When AI-driven decisions are fair, respect privacy and are not opaque, they foster customer confidence

Establishing principle-level guidance on operationalising Responsible AI would induce clarity and confidence

Mobile Instant Credit (MIC) is rapidly growing as a financial inclusion tool, attracting policy and research interest. However, its impact remains understudied, with a weak Theory of Change. The blog highlights three overlooked impact areas and calls for insights from microfinance research.

Medium-to-low digital proficiency users experience anxiety when they have to use in-app mechanisms to deal with problems. It has got to do with designs that do not account for user proficiency and expectations. A few changes could uplift the experience for all users

In response to concerns of fraud perpetrated through the Aadhaar enabled Payments System (AePS), the RBI has issued (draft) directions to all banks and to the NPCI for onboarding and ongoing due diligence of AePS touchpoint operators.