Indian lenders are turning to artificial intelligence (AI) as a key strategy for managing loan collections and acquiring new customers. This technological shift is particularly relevant as the country braces for a severe heatwave, which is expected to pose significant challenges to traditional, cash-based collection methods and on-ground repayment visits.
The anticipated extreme weather conditions highlight the vulnerabilities of physical collection processes. In response, financial institutions are not only exploring AI-driven solutions but are also reassessing and tightening their lending policies, especially for loans in areas identified as climate-sensitive. This proactive approach aims to mitigate risks associated with environmental factors and ensure operational continuity.
About the Author
