From a game changer to the game

"UPI has rewritten India's digital payment story, with almost half of all our digital financial transactions being handled by it," says Dr Sujata Seshadrinathan, Director of IT and Process at Basiz Fund Services. "Reports indicate that the num ber of UPI transactions increased from 4.6 billion in January 2022 to 9.3 billion in June 2023, with a transaction value of Rs 14.7 lakh crore, as per data from the service provider. These figures are indicators of the large contribution made by UPI towards shifting India away from being a cash-based economy towards a more regulated one. All the benefits of a developed economy like transparency in transactions and regularised tax regimes have begun to accrue, with most of the economy, starting from large enterprises to street vendors, farmers, village and cottage industries embracing the technology with gusto," says Dr Seshadrinathan.

Dr Sheshadrinathan says, "It is being actively promoted for use in other mar- kets and innovation powered on by AI technology adoption will provide the necessary push to its success being replicated." UPI has no doubt changed the rules of the game, and as successful as it has become, it relies on a complex financial architecture that depends heavily on other technologies and initiatives. In the same article, Warrier credits e-KYC, account aggregators and ONDC as significant devel- opments, changing the landscape of FinTech here.

Dr Seshadrinathan says, the adoption of AI in FinTech is a gamechanger due to its ability to facilitate precise real-time data analysis and decision-making. Varghese says, "Along with speed and accuracy, Al and ML. will be able to reduce wastage, by giving an indication of either 'Go' or 'No-Go' very early on, it will be able to reduce wastage by eliminating the need for further calculations very early on." Dr Seshadrinathan says the potential enhancing operational efficiencies beyond human capacities, is already a reality. As Al in FinTech is maturing, machine learning, natural language processing, and predictive analytics are creating algorithms for better automation, customer experiences and tackling complex financial requirements, she says

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