AI and Financial Inclusion
A person generally needs a financial history to be approved for credit. Access to credit is often taken for granted in developed countries. Traditionally to provide someone with credit, a credit score must first be established. Artificial intelligence allows financial service providers to make use of alternative data sources, such as information on a person’s phone that might be shared for the purpose of obtaining credit. Satellite images can also provide an estimate of past and future agriculture income as well as the timing and sources of this income, and thus, they can provide key inputs to credit assessments for small farmers. A significant number of features that describe a person’s behaviour can be extracted from the phone, and AI is capable of relating these seemingly unrelated features to a single credit score based on examples of past loan behaviour.
By using AI and data analytics, financial products such as loans become available to a significant part of the world population that has no formal bank account, payslip or digital financial track record. Disbursing small loan amounts suddenly becomes financially feasible, since the entire process is automated and scalable. Fintech companies have found a way to monetize the regulatory hurdles that have kept traditional banks from lending to the poor. The idea of lending purely based on the data available on a consumer’s mobile device, ie creating a mobile digital credit store was an unproven model before but now it is a reality. We are witnessing the emergence of new business models with traditional banks partnering with fintechs for provision of digital credit services and the emergence of non banks fintechs in the digital lending space.
The objective of this session is to discuss some of the innovations that AI and big data analytics and how this can enhance financial inclusion in emerging economies.
Speakers, Panelists and Moderators
KANWALJIT SINGHSenior Program OfficerBill and Melinda Gates Foundation- Leading emerging technologies portfolio of the 'Financial Services for the Poor' team at the Bill & Melinda Gates Foundation - Senior technologist with 12+ years of research experience in the semiconductor industry spanning 6 technology nodes - Intel Achievement Award (2013) "For the demonstration of novel interconnect materials which enable aggressive density scaling for the 10-nm node" - Intel assignee to the Netherlands from the Quantum Computing group leading development of multi-qubit single electron-spin based quantum devices - Chair of Strategic Research Sectors (Advanced patterning, Reliability and Interconnects) tasked with defining, funding and guiding research projects across universities, consortia and industry - 100+ publications and patents in the fields of semiconductor fabrication, quantum computing, materials science, applied chemistry and device performance. - Ph.D. in Physical Organic Chemistry from Cornell University (2006), Ithaca, New York
LJ RICHInventor, BBC "Click" PresenterBBC NewsWorld-renowned presenter LJ Rich is part of Click, the BBC’s flagship technology show. Since reading music at Oxford, she’s predicted tech trends and monitored emerging concepts in consumer electronics for over a decade, with particular interest in audio, AI and art. Her regular music show #ljtunes now has nearly 800,000 likes on Twitter’s live streaming service Periscope, and she’s performed live at some of the most prestigious venues on the planet. During her recent breast cancer treatment, LJ decided to make a video diary of her own chemo sessions to demystify it for others, which hit the top spot on the BBC website.
ALEXANDRA RIZZISenior Research Director, Center for Financial InclusionAccionAlexandra (Kobishyn) Rizzi is a Senior Research Director at the Center for Financial Inclusion, where her project portfolio focuses on responsible data practices and consumer protection. She joined CFI in 2012 and has worked on projects ranging from consumer protection guidance for digital credit, radio-based advocacy campaigns in Uganda, Benin and Ghana and the Client Protection Certification program. Prior to joining Accion, Alex was a Project Development Manager at Innovations for Poverty Action where she helped create the Microsavings and Payments Innovation Initiative (now part of the Global Financial Inclusion Initiative), a research fund focused on rigorous impact evaluations of savings products and payment systems. She has also worked at the Centre for Micro Finance at IFMR Research in Chennai India, where she was the Head of Knowledge Management and Dissemination. Alex holds a bachelor’s degree in political science from Princeton University, and a Master of Science in Foreign Service from Georgetown University and a Certificate in Digital Money from the Digital Frontiers Institute.
RORY MACMILLANFounding partnerMacmillan Keck, Attorneys & SolicitorsBorn and raised in Edinburgh, Scotland, Rory Macmillan is a founding partner of Macmillan Keck and a member of the New York Bar. Prior to Macmillan Keck, Rory practised law in New York and London for ten years with leading New York law firm Debevoise & Plimpton. He has extensive experience advising policy makers, regulators, international institutions, service providers and investors on communications policy, law and regulation, and major corporate and financial transactions. He has chaired dispute processes, acted as arbitrator, mediator and independent expert in disputes of national importance, and trained officials from over 40 countries.