In 2019, RBI reported that losses due to banking frauds have grown by 73.8%. AI-backed robo advisory services have a lot of potential in fraud detection and prevention. Many banks in India have already launched fraud detection robo advisory services for investments. RBI also recently proposed the Positive Pay System for cheque truncation system to prevent frauds in high value cheques. AI is faster, accurate and reduces dependence on humans.
Insurance: Blockchain can automate the insurance process, ensure smooth claims and cut insurance fraud. Banking: Blockchain is used to validate identities, detect fraud in KYC rules. Travel: Blockchain’s P2P transaction feature avoids middleman between a traveller (looking for accommodation) and host. Data storage feature can save information about frequent travellers, later sending it directly to officials for checking. This reduces time for passport checking.
WhatsApp has planned to partner with more Indian banks to expand banking services in rural areas and for lower-income individuals. It has already tied-up with banks including ICICI, and HDFC, allowing them to communicate with their customers using WhatsApp for business. In the next two years, they will work on easing the access to insurance, microcredit, and pensions to low-wage workers etc.