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Introduction: The Dawn of Intelligent Finance
The financial world is undergoing a profound transformation, led not by traditional banks or governments, but by artificial intelligence. Gone are the days when credit scores and historical data solely determined financial worth. Instead, we are entering a new eraāone where AI continuously learns, predicts, and protects. From deeply personalised money management to security systems that outthink cybercriminals, AI is reimagining every layer of finance. This revolution is not about replacing humans; itās about empowering them through intelligent systems that adapt, evolve, and act in real-time.
the Original
In his insightful commentary, Sanjay Aggarwal, Co-founder and CTO of Moneyview, argues that AI is not just changing the financial sectorāitās reinventing it. The future, according to Aggarwal, belongs to dynamic systems that process real-time data to assess creditworthiness. Instead of outdated, rigid credit scores, AI will analyse human behaviour, economic patterns, and global indicators to make lending more inclusive and accurate.
He foresees a world where fraud prevention is proactive rather than reactive. AI-powered systems wonāt just identify anomalies; theyāll anticipate them before they occur. Self-learning algorithms will adapt to emerging cyberthreats faster than criminals can create them. Technologies like deepfake-proof identity verification and decentralised AI-based security will virtually eliminate financial fraud.
In the realm of personal finance, AI will act as a co-pilotāmaking decisions, automating investments, optimising spending, and tailoring financial products to each individualās goals, risk appetite, and lifestyle. Itās not just about making finance smarter, says Aggarwal, but about building an entirely new ecosystem of financial empowerment, where every user can benefit from efficiency, security, and hyper-personalisation.
What Undercode Say:
Aggarwal’s vision of an AI-powered financial world is not just idealisticāitās highly plausible and, in many aspects, already underway. Letās break down his key arguments and explore their wider implications.
Real-Time Creditworthiness is a Paradigm Shift
Traditional credit models are deeply flawed, often penalising individuals for past circumstances without factoring in current behaviour or intent. Real-time credit scoring, powered by AI, opens the doors to financial products for millions previously excluded due to outdated metrics. By analysing mobile usage, transaction histories, and even social cues, AI can draw a nuanced financial profile. Fintech companies across Asia and Africa are already experimenting with such models, proving its feasibility.
Predictive Fraud Detection is Game-Changing
AIās ability to recognise patterns is lightyears ahead of conventional systems. With deep learning and neural networks, fraud detection evolves from static rule-based engines to living systems that adapt. For example, Mastercardās AI fraud detection tool already boasts accuracy levels of over 95%. As AI becomes more decentralised, consumers will benefit from systems that protect them individually, without relying on centralised databases that can be hacked.
Deepfake-Proofing and AI Identity Verification Are Necessary Next Steps
With the rise of synthetic identities and AI-generated fraud, financial institutions can no longer rely on facial recognition or simple two-factor authentication. Emerging tools use liveness detection, voice biometrics, and even behavioural biometrics to authenticate users. Companies like Onfido and Jumio are at the forefront, training AI to spot manipulation in milliseconds. This is no longer futuristic; itās necessary for trust in digital finance.
AI-Powered Personal Finance Will Democratise Wealth Building
The idea of AI as a financial copilot is revolutionary. For most users, managing money is daunting. With AI handling budgeting, investment allocation, debt management, and even insurance negotiations, the average consumer is finally on a level playing field with institutional investors. Apps like Cleo, YNAB, and Plum already provide simplified financial guidance, but the next generation of AI will take this furtherācreating unique financial strategies tailored to each user in real-time.
Inclusion, Automation, and Empowerment
At its core, the AI-driven financial era promises inclusion. Underserved populations, gig workers, and those outside the traditional banking system will have access to intelligent, real-time tools that understand them better than any banker ever could. With automation reducing friction, and personalised intelligence guiding decisions, users gain not just access, but control.
The Caution: Bias, Privacy, and Regulation
However, this future isnāt without challenges. AI systems must be carefully designed to avoid replicating historical biases. Privacy concerns are also paramountāespecially as more behavioural data is fed into these models. Regulatory frameworks must evolve to ensure ethical use of AI in finance. Governments and developers alike will need to strike a balance between innovation and accountability.
š Fact Checker Results:
ā
Real-time AI credit scoring is already used in several fintech platforms across Asia and Africa.
ā
Deepfake-detection and AI-based liveness verification tools are in production use by major ID tech firms.
ā Fully decentralised AI security models are still largely theoretical and not yet mainstream in finance.
š Prediction:
By 2030, more than 60% of global financial transactions will be influenced by AI decision-making systems, from credit approval to investment management. AI financial assistants will become as ubiquitous as smartphones, reshaping how people budget, borrow, invest, and retire. Banks that fail to adopt this wave will likely become obsolete, outpaced by agile fintechs powered by adaptive algorithms.
References:
Reported By: timesofindia.indiatimes.com
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