Paytm building AI system to enable financial institutions capture possible risks: CEO

Online payments platform Paytm is investing in artificial intelligence (AI) to develop a system that will assist financial institutions in capturing possible risks and frauds. 

The company’s CEO Vijay Shekhar Sharma in his message to shareholders from its annual report for FY23 on Monday revealed that the fin-tech platform is investing in AI with an eye on building Artificial General Intelligence software stack. 
In his letter, Sharma mentioned that India can anticipate a significant number of payment consumers, around 500 million, along with approximately 100 million merchants in the near future. He also highlighted that Paytm is currently focusing on investing in Artificial Intelligence (AI) to develop an Artificial General Intelligence software framework.

A message from our Founder and CEO, @vijayshekhar to our shareholders from our Annual Report (FY23)

Read the report here: https://t.co/3jfqhXYyT7#Paytm #PaytmKaro pic.twitter.com/Lw3RGSmG0T

— Paytm (@Paytm) August 21, 2023

Sharma discussed Paytm's broader range of services and its emphasis on AI capabilities. He also mentioned the development of an AI system on a national scale in India. This system aims to assist various financial institutions in identifying potential risks and fraudulent activities, while also safeguarding them against emerging risks stemming from advancements in AI technology.

Paytm’s top official expressed his belief that India is poised to take on the role of a net exporter in the realm of payment technology, encompassing both software and hardware. He radiated confidence as he stated that his fintech company is primed to take a pioneering position in making this a reality.

Sharma envisioned a future for India where there would be approximately 500 million payment consumers and 100 million merchants. He attributed this promising prospect to Paytm's proactive stance, the government's Digital India initiative, and the regulatory authorities' endorsement of constructing an adaptable and expansive payment system.

"We have set our mission to enable 500 million Indians to get benefits of mainstream economic growth. This begins by enabling them with mobile payments and helping extend various other financial services like loans, insurance etc. to them," Sharma said.

He emphasized that Paytm doesn't just reap the benefits, but stands as the foremost advocate for the government and regulator-initiated Digital Public Infrastructure.

Furthermore, he elaborated that Paytm Labs is in a continuous process of developing diverse Artificial Intelligence (AI) and big data functionalities. These features serve to bolster the trust in payments, whether used by consumers or merchants on the Paytm platform.

Looking at India's digital transformation post the mobile payment era, he highlighted that Paytm's forthcoming innovation will revolve around providing modest yet dependable mobile credit. This credit offering will uphold high standards of credit quality and adhere completely to the regulatory guidelines.

"Expectedly this requires sophisticated capabilities in Al and other technologies. I am very proud of our advanced Al capabilities in use and how we are expanding," he said. 

AI has become the fresh trend in the financial world due to its strong potentials. On August 14, the Reserve Bank of India (RBI) announced that it has selected Accenture and McKinsey to use artificial intelligence for its project. The two companies have been selected to offer machine learning and advanced analytics for generating supervisory inputs for the RBI. 

On the other hand, a new study by Accenture published in late July showed that despite the rising popularity of digital banking in India, about 78% of consumers from different age groups still prefer having bank branches in their neighbourhoods. These physical branches are seen as symbols of stability and accessibility, with 70% of respondents relying on them for help with specific and complicated financial matters.