In the news: India’s digital drive

India’s government is actively trying to push the country towards becoming more digital
by Bethan Rees

digital-india_1920
The need for artificial intelligence (AI) is becoming part of conversations all around the world, and India is no exception. Consumer technology news website Gadgets Now reports that one in three Indian business leaders in the banking, financial services and insurance (BFSI) sector say that there is a strong need for AI in their professions.  

The site refers to a free-to-download joint report by NASSCOM, the IT profession’s not-for-profit association, and CyberMedia Research, titled Artificial intelligence for banking, financial services & insurance sector. Gadgets Now says the report states that the sector is to “deploy AI-based fraud detection and prevention tools and chatbots/voicebots for customer support over the next six months to a year”. 

Gadgets Now also reports that the BFSI sector in India is enthusiastic about using AI, and quotes Anil Chopra, vice president of research and consulting at CyberMedia Research. “According to our survey, 74% feel that there's a strong need for AI in the segment, and their primary business objective is to provide a more proactive and personal customer support.” The findings also show the second objective is to automate back-end business, reducing human errors; the third is to track consumer behaviour so businesses can customise products, and the fourth is to use AI for security and compliance.
 
Gadgets Now article
ATMs are a pillar of financial inclusionIt’s not just BFSI sector leaders who want to create a more digitally-driven financial environment. Cashless India is a government initiative with a vision to transform India into a digitally empowered society and knowledge economy. 

However, according to Pratik Bhakta for Economic Times, a report titled ATM industry: changing landscape and emerging trends, by PwC, says ATMs remain a mainstay of India’s financial inclusion drive.

Vivek Iyer, partner for financial services at PwC, told Economic Times that digital payments haven’t kept up with the requirements for financial services in remote places, and that ATMs are essential for the economy. 

Iyer says that there is a strong demand for cash and that banks should invest in ATM infrastructure, otherwise people might turn to storing cash. He also adds that this infrastructure needs the support of the Reserve Bank of India.

“The cost of running an ATM infrastructure is around 50% more than the cost of running a digital infrastructure. Hence, banks will tend to move towards digital,” Iyer says. 

Economic Times article
 
The unhackable database With new tech there tends to be issues or questions surrounding security, but according to India’s union minister for electronics and information technology, Ravi Shankar Prasad, the Aadhaar database – that holds biometric and demographic data on citizens – cannot be hacked, even after a billion attempts, as reported by Business Today. This is despite petitions challenging the initiative in reference to the right to privacy.

Aadhar is a major digital initiative that was rolled out in 2009, and is a 12-digit unique identification number issued by the Indian government to every individual resident of India. 

Business Today refers to the Hindustan Times’ account of Prasad speaking at an event to launch Goa’s IT policy. He says that the system “is completely safe and secure”.

The Supreme Court is hearing petitions challenging its constitutional validity, with 38 days of hearings spread over four months – the second longest case to be argued in India’s constitution, according to Business Today – but this hasn’t stopped its rollout. 

Aadhaar is part of a fundamental transition towards a digital society – a push that is clearly supported by business leaders, evidenced by their desire to invest in AI to improve services for customers. However, in a country as vast as India, where lack of technological infrastructure means old technologies must still be retained to ensure universal access to products and services, that digital dream is still some way off.

Business Today article

Seen a blog, news story or discussion online that you think might interest CISI members? Email bethan.rees@wardour.co.uk.
Published: 20 Jul 2018
Categories:
  • The Review
Tags:
  • Banking
  • digital
  • artificial intelligence

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