Fintech start-ups turn to AI products for accelerated growth

Banks have acknowledged the disruption fintech has created, but it does not mean they will just accept defeat and step aside for the new kids on the block. Banks still hold the assets and many of them have the capability and clout to either partner fintech companies or buy them out.

START-UP PRESSURES

On the other hand, funded fintech start-ups are subject to huge pressures. They have venture capitalist pressures to 'move fast and break things' in a typical fast-growth start-up fashion. They have the pressures of the target demographic groups, which expect everything to work instantaneously. They are also in the sensitive business of handling people's money. So losing the customer's trust is suicidal.

Tap-to-book functionality

They also have intensive guidelines for KYC and authentication mandated by Reserve Bank and the government. So, how are start-ups overcoming these challenges? They are using solutions such as Vymo, Freshdesk and so on to automate as many processes as possible to support their growth. For instance, Vymo helps by allocating the most relevant service personnel, using artificial intelligence (AI).

CONVERSION OF 'LEADS'

Yamini Bhat, CEO, Vymo, said: "We find that prospects (leads) are 40 per cent more likely to convert into customers when they are reached within eight hours of indicating interest.

"Now, consider your average fintech product. Everything is designed to be one-tap. This is up to the point of KYC verification. But, thereafter, you get a call from the call centre to coordinate a meeting with a customer service personnel. The drop-off at this point is huge. "Then it can take almost a week for the personnel to meet you and complete formalities. Again, there is a significant drop-off here. Allocating the most relevant personnel is extremely hard, too.

"It has to be someone who is in the same geographic area, who has sufficient knowledge about the specific product to answer your queries and, most importantly, who is available to meet you."

Vymo uses AI to dynamically allocate the most relevant person to prospects. Here, a prospect can pick the day/ time that is most convenient.

AADHAAR INTEGRATION

And the most relevant personnel will be assigned based on availability. "Vymo has demonstrated a reduction of over 30 per cent in turnaround time for its clients," says Bhat.

Take the case of Aadhaar integration for authentication and customer data. Generally, KYC forms are long, elaborate and time-consuming. Also, a point where there are huge drop-offs. “We are able to use Aadhaar to enable authentication and automatic data capture. So, prospects don't have to enter anything.”

On a different plane, faced with pressures to grow, start-ups add people indiscriminately. They realise only later that processes haven't caught up to support this growth. “With Vymo, they can focus on improving the productivity of reps instead of hiring more people. Start-ups love the fact that we have been able to do this at large organisations,” adds Bhat.