Krishna Venkatraman, Chief Data Officer at Kueski talks about the various ways in which AI and ML driven enhancements are impacting the growth of fintech in this interview:
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Hi Krishna, tell us about yourself and your role at Kueski and your takeaways from being in fintech all these years.
Kueski, the leading buy now, pay later (BNPL) and online consumer credit platform in Latin America, was founded in 2012 and is known throughout Mexico, where we are focused, for its innovative financial products that connect more consumers to the formal economy and ultimately improve the financial lives of Mexicans.
AI and machine learning have always been the backbone of our offerings. My role as Chief Data Officer is to reimagine how we can use AI not only to reap benefits as a company but also to boost financial inclusion and gain consumer trust. By harnessing the power of AI, Kueski enhances access to financial services at scale by analyzing large sets of alternative data to better determine creditworthiness.
Over my last two decades in financial services, I’ve seen successive generations of fintech innovation come to market and have seen firsthand the revolutionary impact it has had on the lives of consumers through greater financial inclusion and a long overdue renewal of customer-centered design. Technology trends have always had a significant impact on the financial services industry – from automation to the cloud and now with AI. We’re in one of the most interesting periods of the fintech evolution with the AI boom. I’m excited to see the many ways fintech will continue to evolve in the future to meet the needs of consumers globally and feel fortunate to have a front-row seat.
How are you seeing AI play a key role in enhancing modern fintech solutions and what thoughts do you have around the future of AI in fintech?
There are several key roles AI plays in enhancing modern fintech solutions and shaping the future of fintech innovation—specifically, employee productivity and response times to customer requests, data accessibility, and security. First, AI tools can automate repetitive tasks, allowing employees to focus on higher-value initiatives, like customer engagement, resulting in better job efficiency as well as customer satisfaction.
AI systems also have the ability to analyze vast amounts of data quickly making it easier for employees and systems to access relevant information. With AI-driven insights and real-time data access, chatbots and virtual assistants can handle routine queries, not only freeing up employee time for more complex tasks but also providing immediate responses for customers. What’s more, not only does AI ensure better-informed decision-making and accurate and timely responses to customer inquiries, but it also ensures that those who are in fact creditworthy are not being overlooked by antiquated credit-decisioning processes.
AI is also having an incredible impact on organizations’ ability to quickly digest and analyze large datasets. This means they can be faster and more agile with better detection of unusual patterns and behaviors that may indicate fraudulent activity. Leaning on AI to focus on combating fraud and managing risk by identifying said patterns and behaviors can increase consumer trust. The integration of AI in the financial sector not only streamlines operations but also enables fintechs to deliver better service and offer more secure solutions.
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How can FIs and fintech innovators use AI more effectively to empower the underbanked and drive financial inclusion?
AI makes it easier for people with varying levels of financial literacy to understand, navigate and use financial products. This reduces intimidation and encourages more individuals to engage with financial services. By prioritizing user experience, financial institutions can leverage AI to significantly broaden their customer reach, ultimately boosting financial inclusion.
AI in underwriting also has a positive impact on financial inclusion especially for emerging markets like Mexico. This includes assessing creditworthiness for individuals with little or no credit history—allowing those who are underbanked access to loans and financial products, streamlining approvals for consumers and lenders to establish creditworthiness quicker, and personalizing products to increase the likelihood of finding suitable options that fit specific financial needs.
In underbanked and underserved countries, such as Mexico, the use of AI by companies like Kueski fosters greater participation in the financial system. We leverage AI to bridge financial gaps by connecting consumers to the formal economy through more accurate assessments of creditworthiness – especially for those without traditional credit histories. Ultimately, AI is democratizing access to financial products, empowering more individuals to participate in the formal economy.
From the global fintech market: what top fintech features have piqued your interest (and why) and which fintech innovators would you like to shout out to in this conversation?
Personalizing products – especially for BNPL – by analyzing customer data to tailor financial solutions that meet individual needs has been a crucial role for AI in financial services. This evolution of machine learning is very interesting to me as advanced algorithms are now able to analyze customer behavior, spending or payment patterns, and credit histories to offer personalized BNPL payment plans that align with users’ financial situations. These models are continuously learning from customer transactions and payment histories, adjusting offers in real-time to better fit changing financial circumstances. For lenders, AI enhances risk evaluation by assessing a wider range of factors beyond traditional credit scores, enabling more accurate lending decisions.
I’d like to call out Adal Ochoa, our CEO and founder at Kueski, who saw the opportunity early when others saw only risk. He has had both the vision to inspire and the persistence to fight through the inevitable challenges and doubts that accompany such a path-breaking journey. I believe this is true for other notable leaders and innovators in LATAM including David Velez from Nubank. As a result of these early innovators getting things started, we are starting to see local ecosystems of innovation generating ideas and products that, in turn, are being emulated in other parts of the world.
Five thoughts surrounding the future of fintech from your perspective before we wrap up.
- While the AI hype cycle appears to be winding down, the excitement and momentum around AI innovations in financial services will not go away anytime soon as companies continue to realize the exponential potential of this technology.
- In the next year and beyond, out-of-the-box innovations – such as Kueski’s in-store BNPL solution, which requires no internet connection – will continue to drive financial inclusion further in underbanked countries like Mexico.
- Fintechs at the forefront of AI innovations, including Kueski, will keep reimagining how AI technology can be used to transform the financial sector. For example, with the rise of chatbots and voice assistants, we’ll begin to see more voice control integrations, allowing users to easily access payment options, check balances, and get recommendations, further improving customer experience.
- Investments in payments technology will remain essential in unlocking transformative fintech innovations, shaping the financial services industry and enhancing the financial lives of consumers.
- Emerging fintech markets, such as Mexico, will benefit the most from transformative innovations because more consumers will be empowered to connect to the formal economy. This will not only have wide-reaching positive impacts on consumers but also the larger economy.
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[To share your insights with us, please write to psen@itechseries.com ]
Kueski is the largest online consumer lender in Mexico, that provides financial services for users who are ineligible for traditional bank loans.
Krishna Venkatraman, is Chief Data Officer at Kueski
