By Nehal Gupta, Founder and Managing Director, Accelerated Money For U
Amid increasing environmental concerns, sustainability is no longer a buzzword but rather a necessity. Ensuring that the earth remains habitable for future generations is the responsibility of the present generation and sustainability is all about how they embrace this duty. However, embracing sustainability calls for decisive actions to be taken. Among many, the development of electric vehicles (EVs) has emerged as a pivotal step towards a greener planet. These vehicles significantly reduce carbon emissions as compared to diesel or petrol ones. In addition to environmental benefits, multiple factors are driving sustainable mobility in India and government policy support remains one of the core pillars.
The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme is formulated to reduce vehicular emissions and promote consumer purchases. Additionally, the Union Budget 2024-25, has also proposed ₹500 crores for the Electric Mobility Promotion Scheme (EMPS) to subsidise two and three vehicles. While these government schemes provide substantial support for the EV industry, technology remains at the forefront.
Artificial intelligence (AI) has penetrated almost every sector and the EV industry is no exception. The EV market is adopting these novel technologies to improve efficiency and the user experience. Furthermore, AI has stepped into the financial industry, significantly impacting the way assets are managed and decisions are taken. AI-powered technologies, along with blockchain, can hasten the adoption of electric vehicles, propelling them towards rapid development by bolstering EV financial service providers. In addition to boosting customer service, it has simplified and redesigned traditional lending operations such as digital lending, credit risk assessment, data protection, etc., making them more successful. As a result, AI has become a valuable tool for the EV financial services industry.
End-to-End Digital Lending
Modern B2B SaaS technology facilitates the development of comprehensive platforms that swiftly connect borrowers and lenders, providing them with access to financial services. By utilising such a paperless approach driven by AI technology, loan authorisation processes are automated, enabling clients to access a range of financial services while also expediting the EV financing process for all stakeholders.
Credit Risk Evaluation
One of the major obstacles to EV financing is the lack of credit history, which prevents the majority of people from adopting electric vehicles. In contrast, the novel credit inspection methods established utilising AI and ML algorithms provide access to unit data and third-party transaction data, allowing lenders to accurately evaluate creditworthiness and overlook loan risk. This technology enables lenders to give loans to the underserved, paving the way for more EV adoption and the creation of a society in which everyone has access to finance.
Fraud Detection
Earlier, EV lenders employed traditional monitoring and screening technologies, which resulted in a large number of false positives. With the introduction of digital transactions, there has been a significant surge in fraudulent activity. EV finance firms can now swiftly examine huge volumes of data to detect irregularities and behaviour patterns associated with these operations by adding better AI components to their current systems.
Data Protection
The lending method ensures the greatest degree of security, privacy, and safety for both the lender and the borrower through the use of AI-based technology. The proprietary lending platform, fuelled by revolutionary blockchain technology and protocols, guarantees data transparency and accuracy, fosters a safe environment for all EV financial service lenders and stakeholders, strengthens EV financing services and enhances EV fleet management. It also provides economical and consistent management of the complete loan life cycle.
Wrapping Up
Electric vehicles are intended to be an environmentally beneficial alternative to those that operate on fossil fuels. This has prompted the automobile industry in India to embrace EVs as part of their carbon emission reduction initiatives, therefore encouraging sustainability. According to Future Business Insights research, the Indian EV market is estimated to reach USD 117.78 billion by 2032, owing to rising demand for sustainable transportation solutions and increased technology adoption. Both AI and blockchain technologies possess the potential to break down existing financial barriers and build an economically inclusive society by increasing job prospects through EV adoption. As the country continues to move forward, EV financial service providers must capitalise on AI technical developments and promote a sustainable future.