In an exclusive interaction with Express Computer, Pinak Chakraborty, CIO, Airtel Payments Bank, shares the bank’s vision and digital strategy, focusing on accessibility, security, and innovation in banking. As the first payments bank in India, Airtel Payments Bank is committed to expanding financial inclusion, particularly in rural areas. Pinak highlights key initiatives such as AI-powered security measures, blockchain applications for secure transactions, and the use of GenAI to enhance internal operations and customer service.
Please share with us what digital plans you have in place for Airtel Payments Bank.
As the first payments bank in the country, Airtel Payments Bank is dedicated to making banking accessible and inclusive, especially in rural and urban areas. We’ve developed the world’s largest distribution network, with around half a million banking points across the country, primarily in rural areas that previously had little to no banking access. Today, we serve one in every five villages in India, bridging the gap for millions who were once excluded from the formal financial system.
Through these banking points, customers can open savings accounts within minutes and access a wide range of services, including money transfers, bill payments, insurance, and digital financial tools like UPI. We also focus on creating user-friendly products to make banking secure, simple, and rewarding, encouraging easy adoption. Additionally, we run financial literacy campaigns in deep rural areas to educate people on the benefits of formal banking and digital payments, helping transition India towards a cashless economy.
When you talk about a fully cashless economy, there are numerous challenges associated with it. So, what are the key challenges facing the drive towards digital banking and how are you addressing them?
The adoption of digital banking has increased significantly over the past four years, but with it, customer concerns about fraud have also grown. We regularly hear alarming stories about fraud in the industry, and ensuring customer safety is a top priority for us. Our research shows that security is a major concern for users adopting digital payments.
In addressing this, security is the driving force behind every product or technological change we make. We’ve developed solutions that prioritise safety while offering a seamless banking experience. I’m proud to say we’re the only bank in the country that offers an additional layer of authentication for digital payments. We also have a comprehensive set of security features that work both proactively and reactively. These include a face match feature, a fraud alarm that customers can raise via the app, the ability to manage daily limits, and a sleep mode for the entire ecosystem from the customer’s perspective. Together, these measures ensure our users feel confident in the safety of our platform.
How do you leverage emerging technologies like AI, blockchain, and IoT to enhance the security, efficiency, and accessibility of digital payments?
Security, efficiency, and accessibility of digital payments are at the core of what we do, and we leverage technologies like AI and blockchain to achieve this. One key innovation is our AI-powered Face Match feature. It works by using a machine learning algorithm to calculate a threat score for every savings account user based on various signals. If the score crosses a certain threshold, the user’s account is secured by requiring facial verification before a transaction can proceed.
Upon detection, the user receives a notification on their registered mobile number, prompting them to verify through a link, which leads to the Face Match feature on the Airtel Thanks App. The user simply takes a selfie, which is compared to their onboarding photo using advanced facial recognition and liveliness checks. Only a successful match allows the transaction to continue, ensuring it’s the user initiating it.
In addition, we have a comprehensive fraud risk management system (FRMS) that evaluates every transaction based on specific signals and scores. If a transaction crosses the risk threshold, additional authentication is required. This use of AI helps us safeguard both the customer and the bank.
Also, do you have any use case benefit of GenAI in your offerings and operations?
GenAI has taken the industry by storm, and we’re exploring its benefits in a few key areas. First, we’re focusing on helping our developers code better. GenAI excels in structured environments like code, so we believe developer productivity can increase by 20-30%. We’re working with technology partners to implement this, viewing it as assisted development rather than a replacement for developers. It also aids in tasks like test case generation.
Second, we’re improving customer experience. We’re exploring automated solutions for responding to customer queries, whether they come through voice, video, or email. GenAI can help us understand the context quickly and respond more efficiently.
Finally, we’re enhancing internal processes, particularly around safety and security. Our fraud risk management system will benefit from GenAI’s ability to understand human language and visual context, potentially improving fraud detection.
GenAI is actually transforming our developer and tester workflows, customer interactions, and internal processes, especially around security.
Now with evolving regulations and increasing cyber threats, how do you ensure compliance, data privacy, and transaction security while maintaining customer trust?
At Airtel Payments Bank, we prioritise compliance, data privacy, and transaction security to maintain customer trust and adhere to regulatory guidelines. We’ve implemented a robust compliance framework to ensure full adherence to regulations while safeguarding customer interests. Additionally, we’ve introduced a “Transparent Banking” section in our app, centralising all essential information like charges, terms and conditions, and customer data storage guidelines. It also clarifies app permissions, providing transparency on data access and privacy protection, ensuring customers are informed about how their data is used. We continuously stay updated with evolving regulations, such as the recently introduced DPDP Act, working closely with industry bodies and regulators to implement necessary changes promptly.
What are the next steps or innovations you plan to introduce to further accelerate India’s digital banking ecosystem and achieve financial inclusion?
There are multiple areas we are focusing on. First, we are working on expanding the NCMC (National Common Mobility Card) solution, which we started as an acquiring bank last year. Our aim is to make it more user-friendly. We’re also enhancing accessibility by improving regional language support and strengthening security with advanced technologies. Additionally, we are collaborating with the government and industry bodies to promote financial literacy. Lastly, we are leveraging emerging technologies like AI and blockchain to improve efficiency and security, driving greater financial inclusion for millions of Indians.
Since you mentioned blockchain, what are CIOs and CTOs thinking of blockchain technology in terms of storage?
When it comes to blockchain, there are certain use cases where idempotency is crucial. Once a record is written, you don’t want it to be modified, often referred to as tamper-proof. This is one aspect. Another aspect is situations involving multiple parties, where a third party is typically needed to provide trust, like in most banking transactions. Even though the transaction happens between two individuals, there is usually a central entity, such as a bank, ensuring that the transaction is processed correctly on both sides. Blockchain simplifies this by eliminating the need for a central authority to provide trust.
There are multiple use cases we are working on. However, for the second aspect I mentioned, the industry needs to progress. When two parties engage in a transaction, adaptability within the industry is required. We’re working with multiple partners, including the RBI Innovation Hub, and expect significant innovation in this area. On the storage front, we’re exploring tamper-proof storage for some of our customer records, which can be protected internally without extensive industry interfaces.