Banking executives propose AI as a means to enhance services and customer engagement. Sopnendu Mohanty emphasizes that AI's most crucial role is addressing financial inclusion. He states that traditional lending practices require collateral, which low-income individuals often lack. This presents a significant barrier to credit access, with only a quarter of low-and middle-income individuals borrowing formally. Mohanty criticizes banks for focusing AI on productivity improvements rather than on innovative lending solutions that utilize alternative behavioral data to assess creditworthiness.
Sopnendu Mohanty believes that AI can help banks overcome the financial inclusion challenge by providing more accessible loan options for low-income populations who lack collateral.
Despite advancements, Mohanty highlights that banks prioritize using AI to boost productivity which results in job cuts, rather than leveraging it to improve lending options for underserved communities.
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