About
Ensuring Transparency, Promoting Integrity, and Safeguarding Underprivileged Women using AI
Innovation presentation
Sustainable Livelihood Initiative (SLI) at HDFC Bank provides vital financial support to those segments of society who lack access to formal banking services. It simplifies the loan process, aiming to empower Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) with financial independence, liberating them from money lenders' grasp.
Through SLI, HDFC Bank has empowered women in diverse professions, from livestock rearing to handicrafts and grocery shops, with improved cash flow for farmers through collateral-free loans. This initiative embodies the bank’s commitment to fostering financial inclusivity and empowering marginalised communities.
The problem arises when the Sales officers go physically to these customer's places to collect the EMIs for the loan taken. These sales officers are using indirect mediums to take the loan EMI from these customers, not adhering to the rules and making the customer experience complicated, instead of smooth and straightforward.
To tackle this issue, we've implemented a transaction monitoring system. Created a comprehensive database of unique UPI (Unified Payments Interface) IDs associated with our sales officers. These UPI IDs serve as digital markers for their transactions.
Now, instead of manually tracking each transaction, we've automated the process using AI. The AI system scans the transaction descriptions from customer debits and cross-references them with our database of UPI IDs. If it finds a match, it raises a flag.
This automated system is a game-changer. It allows us to identify potential unauthorised transactions efficiently. When a flag is raised, it alerts us to investigate further, ensuring that the transaction adheres to our rules and code of conduct.
Uniqueness of the project
The uniqueness of this process lies in its innovative use of AI-driven text mining to proactively detect and prevent unauthorised fund transfers within the banking system. Here are the key aspects that make it unique:
1. AI-Powered Surveillance: The system employs Artificial Intelligence, acting as a vigilant detective, to automatically scan and analyse transaction descriptions for specific keywords and UPI IDs. This AI-driven surveillance is proactive, continuously monitoring transactions for any irregularities.
2. Digital Tracking: Unlike traditional manual methods, this system operates entirely in the digital realm. It tracks digital transactions between customers and Sales Officers, ensuring that every transaction is scrutinised, reducing the risk of oversight.
3. Automation: The process is highly automated. It doesn't rely on manual data entry or human intervention, significantly reducing processing time and the likelihood of human error.
4. Scalability: This system is scalable, capable of handling a large volume of transactions efficiently. It can adapt to the growing needs of the bank as well as changes in transaction volumes.
5. Enhanced Oversight: It offers enhanced oversight by identifying not only unauthorised transfers but also the Sales Officers involved in these transactions. This provides the bank with actionable insights to address potential issues proactively.
6. Operational Efficiency: The AI-driven system drastically reduces the processing time, transforming what used to take hours into a mere 20 minutes. This efficiency gain is substantial, saving valuable time and resources.
7. Quantifiable Impact: The impact of this innovation is quantifiable, with the ability to identify and prevent significantly more unauthorised transactions compared to the previous manual process. This translates into real cost savings and revenue protection.
8. Transparent and Trustworthy Ecosystem: By preventing unauthorised collections and ensuring transactions follow the rules, this system contributes to a more transparent and trustworthy banking ecosystem, fostering trust among customers, Sales Officers, and other stakeholders.
In essence, the uniqueness of this process lies in its ability to leverage cutting-edge technology to address a critical issue in banking, ensuring efficiency, transparency, and integrity in financial transactions.
