Building the Data Pipeline - Fueling Financial Inclusion with Availability & Access to wider data sets

24 May 2023
  • Insights from Vinay S., VP of Product at Perfios, on how the access of improved and wider data sets can further financial access
  • Effective implementation of AA coupled with the right data pipeline can pave the path to more progress in mainstream financial inclusion.

During the second half of the SamvAAd session, a post-lunch speaking engagement was initiated by Mr. Vinay Sathyanarayana, VP of Product – Perfios, and there he threw light on the role of leveraging symmetric homogeneous data in the betterment of AA implementation.

What we all know is that the correct implementation of the AA mechanism at the right step of the process can yield multi-faceted results. However, a few dots still need to be added related to the advanced and efficient mechanism.

Earlier, the transaction used to be in cash with records on paper, and this data accrued was error-prone with chances of manipulation. But with digital transactions, data is also transformed into a digital mode, and the digital data is then converted into its symmetric homogeneous form. Eventually, now the time is for generative data- the sets which produced more data themselves.

Currently, data is being tried to make symmetrical, irrespective of its origin from various financial institutions. Curating such data, making it better, and scaling this in the existing mechanism is a hard nut to crack!

To use such data effectively, one needs a better data pipeline first; then, only it can cater to the growing needs of the younger population and can facilitate better financial inclusion.

Currently, the institutions have proprietary tools, but this mode needs to be revised and in-siloes; successful cases are very few to be found, and scaling up is another challenge.

AA is like one-size-fits-all, and the implementation at the initial stage can offer the best-in-class customer experience as well.

If some institution collects bank statements at a certain step in their workflow which essentially replaces the physical document or e-pdf collection step. This needs to be relooked.

At the initial stage, even through a mobile app, a customer can get to know the availability of financial tools & products and can check his/her eligibility. Several significant benefits can be availed with this approach, like saving costs, no chances of fraud, and real-time data.

Therefore, the focus must be on implementing AA to do underwriting at the onboarding stage.

Many verified entities generally question why we should invest in AA when verified. With AA, one can get consented real-time data and lesser drops, more conversions, and better customer experience leading to better business is the answer. AA also helps in fetching consented data with all the privacy concerns and compliances.

Right data pipelines and effective implementation of AA are a great power at hand for financial institutions and will considerably help in better financial inclusion. But this must neither be overestimated that AA will give disruptive results in 2 months nor be underestimated that results will be visible in 2 years.

Ensure a proper implementation with the right data pipeline and witness its wonders!

Watch the session here: