The recent surge in artificial intelligence has captivated many, with industry voices rallying behind its profound impact on the FinTech landscape. To take an instance of PB Fintech Ltd. Since its inception in 2008, it has embarked on a mission to streamline information, empowering consumers to make informed decisions. This marked a transition to paperless transactions and API integration with insurers; a revolutionary move in the insurance sector.
Today, fueled by AI, service deliverability has been driving productivity and efficiency, especially in the world of finance. Today, with a commanding 90% online market share, we can take an example of Policybazaar's exponential growth, surpassing 14,000 crore last year, underscoring the symbiosis between AI and FinTech, maintaining a consistent 30% CAGR.
With the advancement of AI over the years, conversational AI has emerged and has created a center stage for itself in the field of finance, bolstering efficiency and productivity.
Rajiv underscores the evolving dynamics of customer engagement, particularly in tier 2 and 3 cities, where financial literacy remains a challenge. For this, through AI-driven tools, he says one can bridge this gap, offering insights into insurance, savings, and financial products. Rajiv emphasizes the significance of this educational initiative, despite only a fraction of daily interactions culminating in product purchases. He further highlights the shift in consumer behavior, with a substantial portion seeking knowledge rather than immediate transactions, fostering a culture of financial literacy.
Over the years, Policybazaar has extended its educational outreach, providing millions with free credit score assessments, empowering them to gauge their financial standing. This initiative not only fosters consumer trust but also ignites a dialogue around financial health. Similarly, Policybazaar addresses lapses in insurance policy payments, initiating conversations on policy management and long-term financial planning. Through these efforts, Policybazaar not only facilitates transactions but also cultivates a community of informed consumers, driving sustainable growth and resilience in the FinTech sector.
Additionally, he emphasizes on empowering consumers with policy understanding and renewal guidance, recognizing the challenge of accessing information for many. Through AI-driven education, one can fill in the void and bridge the gap, particularly in tier two and three cities where financial literacy is lacking. Rajiv highlights the importance of human touch alongside technological advancement, deploying point-of-sale agents equipped with conversational AI. These agents, serving 97% of India's geography, facilitate knowledge transfer to consumers, promoting financial literacy indirectly. Despite India's growing online market, the human element remains crucial, ensuring accessibility and understanding, ultimately advancing financial inclusion in diverse communities.
Understanding the intricacies of financial decisions, especially in areas like borrowing practices and healthcare expenditures, is crucial for individuals' economic stability, signified Rajiv. Furthermore, Rajiv emphasizes the necessity of financial education despite growth, highlighting challenges in promoting it effectively. Managing risks, particularly in fraud detection, remains a primary concern. Leveraging AI, fintech players can enhance fraud detection through various channels like chatbots and video testimonials; one can scrutinize past claims and consumer behavior to ensure integrity. These efforts not only streamline processes but also optimize product pricing, tailored to diverse consumer needs. So to say, with a daily influx of consumer interactions, AI-driven analytics provide insights for product development, leading to innovations such as pay-as-you-drive insurance models. These advancements can reflect commitment toward meeting consumer demands while maintaining industry integrity and fostering financial inclusion.
When addressing health insurance, Rajiv acknowledges a prevalent trust deficit among consumers. Policybazaar seeks to bridge this gap by integrating hospitals, TPAs, insurers, and itself to streamline the claim process. Through AI, Policybazaar ensures efficient coordination between these entities, facilitating swift approvals and admissions. This not only enhances consumer experience but also boosts industry efficiency and innovation. Looking ahead, Policybazaar aims to leverage AI effectively in reaching underserved tier two and three cities, prioritizing financial literacy promotion. By utilizing AI beyond traditional agent networks, Policybazaar strives to empower consumers nationwide with accessible and informed financial services.
Simplify decision-making, Enhance Consumer Experiences and Drive Organizational Efficiency
Rajiv emphasizes AI-driven Recommendations’ role in organizational scalability and consumer-centric service in navigating the transformative landscape of AI. taking PB Fintech’s approach, with a workforce reduction from 20,000 to 15,000 employees, AI streamlines operations, enabling rapid expansion. Here, addressing consumer complaints, fintech players can create dedicated claims teams which can hand-hold clients beyond sales; tailored products to diverse consumer needs which reflects an understanding of nuanced market dynamics. This will be essential for widespread adoption as per Rajiv.
Hurdles To Overcome
However, Rajiv acknowledges AI's challenges, notably the potential erosion of human touch. Balancing technological advancement with personalized service remains a paramount concern. As AI continues to evolve, mitigating risks while preserving human interaction poses a central challenge for the future. In navigating these complexities, Policybazaar remains committed to consumer-centric innovation, ensuring AI augments rather than replaces the human element in financial services. Rajiv invites queries, underscoring Policybazaar's dedication to addressing industry-specific concerns and fostering dialogue on the future of insurance and finance.
ABOUT RAJIV GUPTA – PRESIDENT at PB FINTECH Ltd.
Rajiv Gupta possesses a stellar track record in building and expanding large-scale enterprises, with extensive experience spanning banking, insurance, and securities. As a driving force behind new strategic initiatives, risk management, and advocacy at PB FinTech Ltd., he spearheads regulatory engagement with government policymakers, industry associations, and key stakeholders. With board memberships in group subsidiaries, he's a sought-after speaker at government and public platforms. Rajiv's background includes roles at GE Capital, HDFC Securities, SBI, and entrepreneurial ventures.
