AI: The Game-Changer in Fraud Detection and Loan Servicing

Jyothirlatha B

Furthermore, the integration of artificial intelligence (AI), Gen AI, and advanced machine learning technologies remain a focal point of our innovation efforts. These technologies enable us to enhance fraud detection capabilities, develop more efficient processes and streamline loan servicing processes, shared Jyothirlatha B, Chief Technology Officer, Godrej Capital, in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).

Considering Godrej Capital’s emphasis on innovation and creating unique value propositions, can you elaborate on how the company is moving beyond traditional lending models to offer distinctive digital lending experiences, and what specific technologies or initiatives you believe are the most transformative?

At Godrej Capital, we understand that one-size- fits-all lending models are a thing of the past. Since its inception, the company has believed in digital-first approach and pioneered zero touch loans. The company leverages technology to create a truly personalised and frictionless lending experience. For instance, our credit assessment processes go beyond traditional credit scores to analyse alternative data sources for a more holistic customer profile. This enables us to offer faster approvals and tailored loan products and services. Further, the systems are built to enable a smoother omnichannel experience across online and offline touchpoints.

Another focus-area is data-driven product innovation. For instance, the introduction of unique facilities like ‘Flexi Funds’, which works like an overdraft-facility, and innovative features such as ‘Design Your EMI’ demonstrates Godrej Capital’s agility in catering to evolving borrower preferences and market demands. Additionally, Godrej Capital has integrated advanced chatbot support, exemplified by GIA, to provide seamless customer assistance. Through GIA, borrowers can easily access 24/7 support for inquiries and guidance, further enhancing the overall user experience and reinforcing the company’s dedication to customer-centricity.

In essence, Godrej Capital’s approach to digital lending transcends the conventional boundaries of the industry, driven by a relentless pursuit of innovation and customer empowerment.

With increasing incidents of data breaches and cyber-attacks within the BFSI sector, what role do you believe emerging technologies like blockchain, and advanced encryption play in enhancing data security at Godrej Capital? Are there any technologies or approaches you find most effective?

At Godrej Capital, ensuring data security is paramount, especially given the rising incidents of data breaches and cyber-attacks. It is imperative to remember that as technologies evolve for businesses, they evolve for attackers too. While businesses focus on leveraging technology for growth, attackers use it to refine their methods. Technologies like advanced encryption and blockchain certainly make it difficult for attackers to exploit systems for data exfiltration.

In this complex web of data security, the only way to truly secure data is to cut through the complexity and keep the solution simple. Encryption, access restriction, data integrity checks, traceability, continuous monitoring, and testing are all crucial approaches for data protection. This multi-layered approach ensures that data remains secure throughout its lifecycle within our systems.

Our focus is to implement policies on advanced cloud security practices, where we establish highly protected environments with cutting-edge infrastructure. Proactive risk management is integral, with a dedicated team continually evaluating risks and taking measures for both physical and digital security.

In today’s ever-evolving BFSI landscape, security challenges are continually evolving with advancements in technology. Can you discuss the specific security strategies that Godrej Capital has implemented to safeguard against modern cyber threats, and how these strategies integrate with the overall IT infrastructure?

At Godrej Capital, we recognise the dynamic nature of security challenges in the BFSI landscape and continuously adapt our strategies to counter evolving cyber threats. Regular security audits and assessments are fundamental, enabling us to identify and rectify potential vulnerabilities within our systems and applications. Additionally, we prioritise security awareness training for employees and third-party stakeholders, fostering a culture of vigilance. Our security measures are seamlessly integrated with our overall IT infrastructure, ensuring a comprehensive approach to data security. By aligning security protocols with our IT systems, we create a cohesive defence against modern cyber threats.

Lastly, as technologies evolve, we continuously assess their adaptability to our environment. This allows us to upgrade our systems and leverage technological potential for better protection.

Our commitment to governance and compliance ensures the highest standards of ethical practices and regulatory adherence, further bolstering our data security measures at Godrej Capital.

Can you detail the strategic advantages of adopting a multi-cloud strategy at Godrej Capital, especially in terms of risk mitigation, flexibility, and cost management, and how this aligns with the company’s overall technology strategy to ensure resilience and compliance with regulatory requirements?

At Godrej Capital, we have chosen to adopt a single cloud strategy for several strategic reasons. This streamlined approach simplifies security protocols and governance measures, reducing the potential for vulnerabilities and ensuring a robust defence against cyber threats. Secondly, our single cloud strategy offers flexibility and scalability to meet evolving business needs. This provides a comprehensive suite of services and solutions, enabling us to adapt quickly to changing requirements, scale resources as needed, and drive innovation without the complexities of managing multiple cloud platforms.

This decision aligns closely with our overall technology strategy, ensuring resilience, compliance with regulatory requirements, and efficient resource management.

The Nirmaan initiative at Godrej Capital aims to empower MSMEs and foster inclusive growth through leveraging analytics data and feedback mechanisms. Could you share insights on the ongoing enhancements and expansions of this initiative, and how it has evolved since its inception?

Godrej Nirmaan stands as a pivotal platform dedicated to empowering MSMEs and fostering inclusive growth by leveraging analytics data and feedback mechanisms. Since its inception last year, Nirmaan has evolved into a comprehensive solution hub to address various challenges faced by MSMEs. Recognising MSMEs as vital engines of the economy, Godrej Capital emphasises bridging the significant credit gap by rendering MSMEs lendable. To this end, Nirmaan serves as a catalyst, providing a one-stop platform and facilitating services geared toward enhancing MSME growth.

The Nirmaan initiative takes a multi- pronged approach to empower MSMEs. Nirmaan equips businesses driving growth. Additionally, Nirmaan is expanding its partner network and services offered on the program’s portal. This creates a holistic ecosystem that goes beyond just loans, providing MSMEs with the tools and support they need to thrive in the long run. Godrej Capital further strengthens Nirmaan through a robust feedback mechanism. This allows the platform to gather insights directly from MSMEs and continuously refine the initiative to ensure it remains relevant and addresses the evolving needs of this crucial market segment.

As a leader in technology, you’ve witnessed the rapid evolution of digital banking solutions. From your perspective, what are the next significant trends in fintech that Godrej Capital is preparing to adopt or innovate upon in the coming years?

The future of financial services holds immense promise, characterised by transformative trends that are reshaping the financial landscape. As a modern-day non-banking financial company, Godrej Capital actively embraces these innovations to drive forward-thinking solutions that enhance customer experiences and foster financial inclusion.

Furthermore, the integration of artificial intelligence (AI), Gen AI, and advanced machine learning technologies remain a focal point of our innovation efforts. These technologies enable us to enhance fraud detection capabilities, develop more efficient processes and streamline loan servicing processes. By harnessing the power of AI and ML, we can deliver tailored solutions that meet the unique needs of each customer while optimising operational efficiency. By embracing emerging trends and leveraging cutting-edge technologies, we are dedicated to delivering innovative financial solutions that empower individuals and businesses to thrive in an increasingly digital world.

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