Issue #48: AI Banks on Inclusion: Democratizing Financial Services

AI for Financial Inclusion: Expanding Access to Services

Issue #48: In This Issue

💳 Alternative Credit Scoring: AI-Powered Financial Profiles

📱 Mobile Banking: AI for Accessible Financial Services

🤖 Chatbots and Virtual Assistants: 24/7 Financial Guidance

🔒 Fraud Detection: AI Safeguarding Vulnerable Populations

Hey AI Maximizers!

Greetings to this socially core edition of this newsletter about AI! Firstly, this week we concentrate on how through some vindications AI is designing the structures of financial inclusions. The provision of services in this area is to a greater extend inclusive, explaining why systems such as artificial intelligence and big data have been introduced. Let us see how AI is becoming an agent of financial inclusivity!

The AI and the Financial Integration

Do you remember when being without a bank meant not being able to engage in financial activities of any kind? For millions around the globe, this is what going without a bank means. But then there comes artificial intelligence which makes this a new history as there is a welcomed approach of financial inclusion which is more customized and faster than before. Some of the developments that have changed the world are as follows.

Alternatives to Conventional Credit Scoring: Financial Profiles created through AI Engines

Use of machine learning methods allows credit assessment based on non-conventional data making it possible for the people who fall under the informal sector to have access to the services.

A revolutionary case in point: Lenddo is able to score people in developing markets who are basically left out of the banking system by simply employing AI to scour their social media pages and smartphones.

Allowing easy access to banks: Mobile Banking and Retain Services

There has also been a rise of AI enabled mobile banking channels which are enhancing the delivery of banking services even in the underdeveloped regions of the country.

Real-world impact: M-Pesa, the mobile money service that has incorporated a lot from AI, has transformed the mobile money landscape in Africa, reaching out to millions of people who had never had any banking experience.

Chatbots and Virtual Assistants: Financial advisor round the clock.

Several studies highlight the potential of AI Chatbots to ensure 24/7 Financial Advice & Support and hence contribute towards improved Financial Literacy.

Adaptive application: Erica, a virtual financial assistant at Bank of America powered by AI technologies, is designed to help customers perform simple operations and offer financial advice and it serves around 10 million users.

Fraud Detection: AI Security for the At-Risk Audience

Moreover, AI can be incorporated to recognize and reduce incidences of fraudulent activity, thereby safeguarding those individuals that have entered the formal setup of finances for the first time.

Success story: The AI system by the Southeast Asian super app Grab has increased the protection of millions of users from fraud in the company’s financial services as well as helped in the acceptance of digital financial services.

AI Impacting Financial Exclusion, But in a More Humanistic Way.

There may be some lack of financial inclusivity but cultural appreciation and penetration are still equally important. The integration of of technology and cultural considerations together with business, is predominant in legitimising AI financial inclusiveness.

Ethics In AI Financial Inclusiveness

In extending the ambit of financial services, we have to make tough ethical choices whilst applying the AI. How do we make sure that the AI will not reinforce or bring new hires the desired stereotypes in the financial systems? What measures are put in place to ensure that data sources from the outside do not compromise the confidentiality of data in the databases? These are issues that the market is taking head on.

Your AI Financial Inclusion Challenge

During this week put some required thought into the financial services in a community you live or know. What is one variable that can involve interest in AI technology to enhancing financial services accessibility or education levels? We encourage you to post those in our forum for you never know who you may motivate to come up with the next big idea in the field of AI oriented financial inclusion!

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Until next time, keep innovating for more inclusive, accessible financial services!

Maximizing together,

Fred Yalmeh

P.S. Have you experienced or witnessed any AI-powered financial inclusion initiatives? Share your story with our community and let's discuss how we can further leverage AI to democratize finance!