“AI altering the financial business”

Ajay Thomas, Chief Digital Officer, Shriram Capital

Artificial intelligence is becoming more popular all around us. The advancement of current technology, the availability of a little computer device (smartphones) in everyone’s hands, and the capacity to draw real inferences from massive volumes of data created by the continual flow of information all demonstrate the ubiquity of AI in our daily lives.

From the Great Recession through the 2008 mortgage crisis and, most recently, COVID-19, the banking and financial industry has had its fair share of ups and downs, including systematic racism, dishonesty, and the approach to meeting high regulatory requirements in a multi-channel marketplace.

AI analyses data from millions of references to find outcomes and identify trends. It offers institutions, organisations, and individuals a once- in-a-lifetime opportunity to create new solutions to old problems. AI is already altering the financial business.

We operate in multiple areas which are more underserved. When I talk about underserved, we are more into transport, books which are not being managed by multiple NBFCs in India. For us, co-lending has become one of our priorities in terms of how we look at acquiring new consumers. Finding out the right partner gives us an opportunity to scale quickly and figure out what really works for us.

AI may analyse individual bank records of consumers to determine their assets and liabilities, how they are performing economically, and make recommendations on current actions based on this data for the desired outcomes. AI may also help people and financial businesses improve their organisational wellbeing and behaviour by automating savings and budgeting.

In the financial industry, AI may be used to examine cash savings, card payments, and mutual funds to assess a person’s financial state and performance, keeping up with current changes, and then making personalised recommendations based on new additional information.

Also Read | AI-Analytics for Banks: A Metapolicy View of the Next Steps

According to the annual report, on 18th January 2022, they have issued 4.15 per cent Senior Secured Notes due 2025 (Social Bonds) worth USD 475 million under the USD 3.5 Billion Global Medium Term Note Programme to the Qualified Institutional Buyers (QIBs) under the Rule 144A of the U.S. Securities Act 1933 and to the eligible investors outside the United States under Regulation S of the U.S. Securities Act 1933. The Social Bonds issue received a good response from investors with oversubscription by more than 2.5 times. The Social Bonds are listed on the Singapore Exchange Securities Trading Limited, NSE IFSC Limited and India International Exchange (IFSC) Ltd. (‘India INX’).

The Company has made initiatives to reduce operational risk by utilising Artificial Intelligence and Machine Learning for automated lending, a customer-centric strategy, and the upskilling and re-skilling of its human resources. Our knowledge in credit analysis and collections established over the last three decades aids in credit risk mitigation.

We borrow using a relationship-based approach and modern credit evaluation systems, and we keep in touch with consumers on a regular basis. We regularly examine our internal processes and systems to decrease operational risk.

Excerpts of Ajay Thomas, Chief Digital Officer, Shriram Capital from an exclusive interview with Elets News Network (ENN).

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.