How The Indian FinTech Is Using AI

From digitally lending money to large-scale data analyses, the use of artificial intelligence and machine learning has brought FinTech—an industry that covers the integration of finance and technology—to new heights, especially with the ever-enlarging spools of data that need to be processed. Let’s see how this reflects in some of India’s FinTech startups(listed in no particular order):


Razorpay is India’s only payments solution that allows businesses to accept, process and disburse payments with its suite of products. Their AI-powered system Thirdwatch helps reduce Return-to-Origin (RTO) fraud losses in e-commerce. RTOs frauds take place when customers return a product by either swapping it with a faulty product or by denying that they ever received it in the first place.

The AI helps reduce RTO frauds by having an AI engine process orders directly from the user’s account on the e-commerce platform Shopify. Here, the AI green flags low-risk orders and red flags risky ones. These red-flagged orders can be rejected or approved depending on the reason for their risk. 

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Source: RazorPay


INDmoney is an AI-driven financial advisory offering by FinZoom Investment Advisors. The company was founded by Ashish Kashyap, founder of Goibibo and PayU India. Its IND SuperMoneyApp automatically organises user money and advises users on increasing their savings and earnings across investments, loans, taxes and expenses. INDwealth is the company’s wealth management platform.

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CogNext is a startup Regulatory Tech (Regtech) company that allows financial institutions to automate and digitise analytical processes and solve large-scale problems with the help of AI and ML algorithms. Through these algorithms, CogNext simplifies and automates regulatory compliance cost-effectively. 

CogNext also has an automated technology platform, Platform X, which provides ‘nimble, configurable, interactive, scalable and cost effective’ solutions for regulatory compliance. Such solutions allow financial institutions to control the risk they undertake and improve results in integrity and transparency. Project X works through a technological framework that enables processing customer data and calculations easily. Another element of CogNext is its AutoML solution which encourages domain and business experts working in financial institutions to use ML and AI to create business values. Teams can use this to develop advanced AI projects without coding or even understanding the underlying ML algorithms. Hence, CogNext streamlined the bank or FI model workflow at higher volumes and reduced turnaround times without requiring specific technical knowledge.

Capital Float

Founded in 2013 by Gaurav Hinduja and Shashank Rishyasringa, Capital Float is among India’s leading ‘Buy Now Pay Later’ and credit-solutions platforms.  

Capital Float employs AI technologies along with human insight to facilitate risk assessment and marketing. AI and ML algorithms help the company comprehend the creditworthiness of applicants, allowing them to choose the right type of loans for the applicant. Capital Float also utilised AI models to better target customers in their marketing campaigns. In 2018, they acquired a leading Personal Finance Management App, Walnut, further pushing them into the credit-solutions industry. Currently, they provide solutions for personal finance (through Walnut), Business Finance and short term credits for small businesses, and their Buy Now Pay Later platform— also known as Walnut 369. 


CreditMate is a collections platform that assists lenders to collect delayed repayments from borrowers. The application utilises AI and ML to make its processes more efficient. In 2019, the company introduced its ‘Sherlock’ product, which uses an ML algorithm to score debt defaulters and manage debt resolution processes cost-effectively. 

Source: CreditMate


Founded in 2014, Lendingkart uses AI to access working capital finance options easily. The company is a non-deposit taking NBFC (Non-Banking Financial Corporation), which provides SME (small and medium enterprises) lending in India. Thus, it uses this technology to help with credit evaluation, product interaction and quality lead scoring. The AI algorithm analyses over 10 thousand data points to analyse an applicant’s creditworthiness. This technology integration helps small businesses thrive, which is integral to India’s digital ambitions.

Source: LendingKart


Developed in 2011, Mswipe is among India’s largest independent mobile POS merchant acquirer and network provider. In 2019, Mswipe started its expansion to smart POS terminals and UPI QR codes. The company also uses AI in its Field Force Automation Application (F2A2), a merchant onboarding platform by Signzy, another startup based in Bangalore. The use of AI has reduced onboarding time for new merchants from around three days to half an hour.

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by Vijayalakshmi Anandan

The Deep Learning Curve is a technology-based podcast hosted by Vijayalakshmi Anandan - Video Presenter and Podcaster at Analytics India Magazine. This podcast is the narrator's journey of curiosity and discovery in the world of technology.

Mita Chaturvedi
I am an economics undergrad who loves drinking coffee and writing about technology and finance. I like to play the ukulele and watch old movies when I'm free.

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