How technology is reducing security concerns for credit card and digital lending companies in India

Technology has simplified our lives to a great extent. Gone are the days of physically standing in long queues to pay bills, book tickets or transfer money. Aided by huge smartphone penetration, affordable high-speed internet and various digital payment options, the e-commerce industry in India is booming like never before. The role of fintech companies in financial inclusion by streamlining traditionally time-consuming processes using the power of technology is considered to be an important factor in this massive digital revolution in the country.

Fintech companies offer various services, including online payments, instant credit, Buy Now Pay Later (BNPL), robo-advisors, insurance, investments and many more. Consumers prefer fintech companies mainly because of the speed, privacy, convenience, ease of use and multichannel access they offer without human interaction. Thanks to fintech, tasks like taking out a loan or mortgage that used to take days or weeks in the past can be completed in 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 unfortunate mistakes.

A few months ago, a leading Bollywood actor tweeted how his PAN was misused online to take loans in his name without his knowledge. There are some other instances where unscrupulous elements have misused the information to open new fake accounts for abuse. The most common digital scams in India include phishing, identity theft, spoofing, transaction fraud and account fraud. Therefore, users should take basic precautions such as verifying the authenticity of websites or apps and sharing ID proofs only where necessary.

While technology is making life better for fintech customers day by day, fraudsters, too, are constantly innovating to find new ways to identify people. With fraud on the rise, the onus is on organizations rather than consumers to prevent scams while protecting the interests of genuine customers.

To improve the overall experience of real customers without compromising on security, domestic fintech companies have introduced a series of measures. Some of the latest security measures include multi-factor authentication, issuance of virtual cards that generate new card numbers for each transaction, AI-based facial recognition and machine learning-based fraud detection solutions. time base.

Some companies also use cutting-edge techniques such as unsupervised learning or deep learning machine models, which continuously and automatically learn from instances of fraud without retraining.

To stay ahead of threats in the fight against fraud, new-age digital lending companies are turning to advanced technologies like proprietary unique device detection systems that work in the background without affecting user privacy, and behavioral fraud detection, which checks how an applicant is screened. Moving through the workflow. Apart from these, some fintech companies use open source grid-based mapping solutions to help detect sudden transaction spikes from certain regions and identify common fraud patterns. Taking a step forward from AI-based facial recognition, some organizations also use the advanced technology to check an applicant’s ID proof photo with their existing user database to eliminate potential frauds and protect the interests of genuine customers.

Bottom line: Effective use of technology increases customer happiness while avoiding fraud

Identifying and preventing online fraud is an ongoing process. A long and complicated process using multiple customer data points to obtain credit can turn off potential customers, especially genuine customers.

With the heavy lifting done by technology, availing instant online credit is a breeze for genuine customers. By using the power of cutting-edge technologies, removing additional checks for customers reduces inconvenience to applicants and ensures a wow experience. At the same time, it guarantees detection and prevention of fraud in real time.

Privacy, convenience and security of information are top concerns for most consumers. Technology helps complicate things. With advanced technologies, new-age digital loan companies are constantly raising the bar in terms of privacy, convenience and security for legitimate customers. As a result, while fraudsters face more obstacles, things have become more accessible to genuine customers.



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The views expressed above are the author’s own.



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