Technology has simplified our lives to a great extent. Gone are the days when one had to physically stand in long queues to pay bills, book tickets or transfer money. Aided by the mass penetration of smartphones, affordable high-speed internet and a variety of digital payment options, India’s e-commerce industry is booming like never before. An important factor behind this massive digital revolution in the country can be attributed to the role of fintech companies in financial inclusion by streamlining traditionally time-consuming processes using the power of technology.
Fintech companies offer various services including online payments, instant credit, Buy Now Pay Later (BNPL), robo-advisory, insurance, investments and many more. Consumers prefer fintech companies mainly because of the speed, privacy, convenience, ease of use and multi-channel accessibility they offer without human interaction. Thanks to fintech, tasks like taking out a loan or mortgage that took days or weeks in the past can be completed in just a few minutes from the comfort of home.
While India’s digital boom has empowered consumers in terms of convenience, on the one hand, there are also some nasty pitfalls.
A few months ago, a leading Bollywood actor tweeted how his PAN was misused online to avail a loan in his name without his knowledge. There are several other cases where unscrupulous elements misuse information to open new fake accounts for abuse. The most common digital frauds in India include phishing, identity theft, spoofing, transaction fraud and account fraud. Therefore, users should exercise basic caution, such as verifying the authenticity of websites or apps and sharing proof of identity only when it is essential.
While technology is making life better for fintech customers day after day, fraudsters are also constantly innovating to find new ways to scam people. With fraud on the rise, the responsibility to prevent fraud while safeguarding the interests of genuine customers lies more with organizations than with consumers.
To improve the overall experience of real customers without compromising on security, local fintech companies have introduced a series of measures. Some of the latest security measures include multi-factor authentication, virtual card issuance that generates new card numbers for each transaction, AI-based facial recognition and machine learning-based fraud detection solutions to analyze irregular transactions and user behavior on a real-time basis.
Some companies also use cutting-edge technologies such as unsupervised learning or deep learning machine models that continuously and automatically learn from fraud cases without retraining.
To stay ahead of threats in the fight against fraudsters, select new-age digital lending companies are turning to advanced technologies such as their own unique device detection systems that run in the background without affecting user privacy, and behavioral fraud detection. which checks how the candidate moves through the work process. In addition to these, some fintech companies are using open-source network-based mapping solutions to detect sudden spikes in transactions from certain areas and help identify common fraud patterns. Going a step further than AI-based facial recognition, some organizations are also using advanced technology to verify an applicant’s photo ID proof against their existing user database to eliminate potential fraud and protect the interests of genuine customers .
Bottom line: Effective use of technology increases customer enjoyment while keeping fraudsters at bay
Detecting and preventing online fraud is an ongoing process. A long and complex process using multiple customer data points for credit utilization can cause potential customers, especially genuine customers, to drop out in the middle.
With the heavy lifting done by technology, availing instant online credit is a breeze for genuine customers. Eliminating additional checks for customers by leveraging the power of cutting-edge technology reduces candidate inconvenience and ensures an amazing experience. At the same time, it ensures real-time fraud detection and prevention.
Privacy, convenience, and security of information are primary concerns for most users. Technology helps simplify things. With advanced technology, new age digital lending companies are constantly raising the bar in terms of privacy, convenience and security for legitimate customers. As a result, while fraudsters face multiple barriers, things have become more accessible for genuine customers.
The views expressed above are the author’s own.
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