Application of Artificial Intelligence in Credit Co-operative Societies

Abstract

In India Credit Co-operative Societies plays a vital role in helping farmers and deprived section of the society by providing affordable credit and their by uplifting their socio-economic life. They are also playing gigantic role in financial inclusion and thereby helping government of India in its mission of financial inclusion. The application of technology and more so the recent invention of Artificial Intelligence is expected to help the Credit Co-operative Societies to offer personalized services at lower cost but also provide security for financial operations, find out credit worthiness of members, detect fraud, and provide data driven inputs for better lending decision-making, minimizing default risks, resource optimisation, etc. As per the data available in India, only one credit cooperative society namely Sahaj Cooperative has implemented Artificial Intelligence in its operation. This has motivated the Researcher to take up the present study. The present study aims to assess the level of awareness among credit cooperative societies about Artificial Intelligence and its application, benefits. The study revealed that credit cooperative societies do not have awareness about Artificial Intelligence and its application, benefits. To bridge this awareness gap, educational and promotional measures need to be undertaken and National Federation of Urban Cooperative Banks and Credit Societies Ltd. (NAFCUB) and the National Federation of Cooperative Credit Societies Limited (NFCSF) are expected to play a vital role in this direction.