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NeoKred CEO shares Approach to Privacy, Security & Fairness in AI-Powered Financial Solutions: In Conversation with ObserveNow

India’s FinTech sector is rapidly expanding and is positioned among the world’s swiftest-growing markets. As per a report by Invest India, the Indian FinTech industry’s worth stood at $50 billion in 2021, with projections indicating a surge to approximately $150 billion by 2025. Funding in the FinTech domain has been robust, constituting 14% of global funding, with India securing the second position in deal volume. Forecasts suggest a significant market opportunity of $2.1 trillion by 2030.

In 2022, Indian FinTechs emerged as the second most funded startup sector in the country, raising a substantial $5.65 billion. Furthermore, the number of unique institutional investors in Indian FinTech nearly doubled between 2021 and 2022, soaring from 535 to 1019, respectively.

Tarun Nazare, CO-Founder & CEO, Neokred

India embarked on its open banking journey in 2010, driven by government initiatives such as the establishment of the Aadhar Identification System and infrastructure projects like “India Stack,” which aimed to enhance financial inclusion through digital technology. Unlike many global data policy frameworks, India’s approach focuses on creating extensive public infrastructure and standards. In this regard Siddharth Mala, Correspondent, ObserveNow Media, interacted with  Tarun Nazare, CO-Founder & CEO, Neokred.

Below are a few edited excerpts from the interview:

Open banking and APIs have transformed the way financial services are delivered and consumed. How does NeoKred leverage open banking infrastructure to provide secure and seamless integration of financial services, and what are the key challenges in navigating this ecosystem?

NeoKred leverages open banking infrastructure to serve as a financial data sherpa, ensuring secure and seamless integration of financial services. By securely connecting you to the best financial products, we enable activities like comparing loans, managing investments, and automating savings—all within one seamless platform.

However, navigating the open banking ecosystem presents challenges. Data security is paramount, and we continuously invest in robust encryption and authentication protocols to safeguard sensitive information. Additionally, adhering to complex regulations such as GDPR and PSD2 requires constant vigilance and adaptation to ensure compliance while delivering a smooth and secure financial journey.

Fintech is a rapidly evolving field, with trends like Buy Now, Pay Later (BNPL), neo-banking, and blockchain technology reshaping the industry. How is NeoKred positioned to capitalize on these trends, and what opportunities do they present for the future of finance?

With innovations such as Buy Now, Pay Later (BNPL), neo-banking, and blockchain technology reshaping the sector, NeoKred recognizes their significant potential in shaping the future of finance.

The company acknowledges that these products generate valuable data with each use. Utilizing BNPL data, NeoKred empowers lenders to offer instant credit access, particularly targeting a younger demographic and individuals new to credit. This data-driven approach facilitates better financial decision-making and expands credit accessibility to a broader audience.

Furthermore, NeoKred’s neo-banking platform integrates financial services seamlessly, providing users with a unified and intuitive experience. Leveraging blockchain technology ensures secure transactions, thereby fostering trust and reliability in financial dealings.

Rather than passively observing trends, NeoKred actively embraces them to pioneer the future of finance, prioritizing the empowerment of individual users. By embracing emerging technologies and trends, NeoKred stands as a leader in driving positive change and fostering innovation within the financial services sector.

What growth strategies have NeoKred employed to expand its customer base and ensure sustainable growth in a competitive market?

NeoKred has embraced inventive growth strategies to broaden its customer base and ensure enduring expansion within a competitive market. Rather than striving to catch up in the crowded Fintech landscape, the company prioritizes innovation as its primary distinguishing factor.

The “Bank in a Box” idea distinguishes NeoKred by presenting a comprehensive solution for diverse financial requirements. Enterprises can utilize NeoKred’s platform to furnish their clientele with cards, virtual accounts, and additional financial services, all personalized under their own brand. This approach not only heightens convenience and oversight for clients but also safeguards their financial experiences for the future.

Through the innovative “Bank in a Box” concept, NeoKred establishes a mutually beneficial scenario for both enterprises and clients by providing a one-stop destination for financial services. This dedication to innovation and customer-centricity underscores the company’s ethos.

As AI becomes more prevalent in fintech, ethical considerations become increasingly important. How does NeoKred ensure that its AI-powered solutions uphold principles of privacy, security, and fairness while driving innovation in financial services?

NeoKred acknowledges the increasing importance of ethical considerations in the incorporation of AI into fintech. As AI is utilized to drive innovation in the financial services sector, maintaining adherence to principles such as privacy, security, and fairness is crucial.

Their approach involves rigorous testing of AI-driven products across different industries and user demographics to create comprehensive solutions that cater to diverse requirements. By actively involving industry stakeholders and end-users, NeoKred gains valuable insights that shape the development and enhancement of their AI algorithms and solutions.

Privacy and security stand at the core of NeoKred’s AI implementations. They integrate robust security measures directly into their AI models to safeguard sensitive data throughout its lifecycle. Additionally, their utilization of Large Language Models (LLMs) contributes to enhancing security and privacy through thoughtful design.

Digital transformation is reshaping businesses across industries. How does NeoKred contribute to this transformation, and what role does technology play in improving efficiency, enhancing customer experiences, and driving innovation in the financial services sector?

NeoKred acknowledges the significant impact of the digital revolution on the financial services sector and assumes a crucial role in spearheading this change. Through the utilization of technology, NeoKred empowers enterprises and enhances customer interactions, thus contributing to the continuous evolution of the industry. Their cloud-based platform serves as a fundamental component of digital transformation, providing a range of tools and services tailored to streamline operations and boost efficiency.

From data platforms to consent management suites, virtual accounts, and co-branded cards, NeoKred equips businesses with the necessary infrastructure to excel in the digital landscape. By harnessing technology’s potential, NeoKred facilitates accelerated product launches, thereby reducing time-to-market and increasing adaptability. Additionally, their platform ensures seamless financial experiences for customers through instant approvals, simplified payments, and personalized features.