Leveraging on AI and Machine Learning for Identity Fraud Reduction and Credit Risk Management

A week ago, FinClub participated in “Les Assises de la recherche et de l’innovation”, a commendable 3-day Conference on Research & Innovation organised by The Mauritius Research and Innovation Council (MRIC) between 27-29 April 2022. A first in #Mauritius, the aim was to regroup the public and private sector, academia, researchers, local and international expert, to design strategies and chart incentives to foster #innovation in all sectors of the economy. The opening ceremony was marked by the presence of the President of the Republic of Mauritius, Mr Pritvirajsing Roopun and Mr Darsanand Balgobin, Minister of Information Technology, Communication and Innovation, and other personalities.

FinClub, along with other prominent #innovators such as YUGO Mauritius, Ogment Co Ltd, Mauritius Renewable Energy Agency (MARENA), BEM Recycling, Amalgam Watches Ltd, Lean Search Ltd, My pop-up store and RIPE Mauritius Ltd among others, were given the opportunity to showcase their innovation-driven products & services. With the support of the MRIC under the Research and Innovation Bridges (RIB) scheme, FinClub is currently exploring new technologies & innovation that can further improve access to financial services for individuals, SMEs & institutions. The ongoing evolution of technology and the emergence of tech innovation is having a greater impact on the financial services industry, among which are Artificial Intelligence and Machine Learning (ML).

AI and machine learning have already helped FinClub to automate a variety of processes, shrink operating costs, and make life easier for both lenders and borrowers. However, Artificial intelligence and its subsets of machine learning and deep learning today make it possible to accurately process, verify, and authenticate identities at scale. As such, FinClub has been collaborating with international experts to integrate more of these innovations to mitigate identity fraud and bolster its credit risk management framework, namely FinScore, its unique proprietary credit scoring module.

The event allowed FinClub to demonstrate to those in attendance its accomplishments and in real time showcase how FinClub.mu is leveraging on Artificial Intelligence and Machine Learning to offer an excellent alternative way of borrowing and lending to Mauritians. From enhancing the customer experience to cutting costs and passing the savings to borrowers & lenders, the benefits are many:

1.    Easy identification of defaulters- Machine learning, with its predictive analysis, empowers FinClub to identify the borrowers who are highly likely to default later.

2.    Hastening the loaning process- The automated workflow improves the turnaround time for loan processing and offers less space for human error.

3.    Lessening/Eradicating errors – From the early stage of loan application to underwriting, most of the steps involved demand preparing  and verifying several documents. Machine lending comes in handy here by adding automation to the process, prompting for human intervention where required the most, and thus, streamlining the complete loan cycle.

4.    Reducing operating costs by automating several aspects of the lending process- Machine learning is able to automate the process and in doing so, enhances the overall experience and quality of the process while reducing the overall costs. These savings are in turn passed on to the borrower and lender in terms of interest rates payable and receivable.

Yet, whilst Peer to Peer Lending is fairly new in Mauritius, FinClub is undertaking continuous researches and investments as required to ensure that the business model remains impactful & agile and, the customer experience is substantially enhanced. The ‘Assises’ provided FinClub with a unique platform that initiated dialogue on research and innovation and also further insights on emerging technologies from prominent international experts.

Kudos to #MRIC and its team for such a great event!