NAME : BANISHA SEHRAWAT

CLASS: 12D

TOPIC: IMPACT OF AI ON INDIAN ECONOMY

Artificial intelligence in Peer-to-peer lending in India: a cross-case analysis

Purpose
This is an original piece of research holding the promise to position itself as
a pioneering research to showcase the evolving role of Artificial intelligence
(AI) in the Indian peer-to-peer lending (P2P) markets. The research
effectively uses the holistic multiple case study design to highlight the
phenomenon of how AI as the holy grail of investments is proving to be a
game changer for the Indian P2P markets.

Design/methodology/approach
The study uses a unique research design and curates six Indian licensed
Non-Banking Financial Company (NBFC)-P2P as exemplary cases to cull
out unique contextual findings on how AI has penetrated the Indian P2P
market and road ahead. The research is based on a total of 18 semi-
structured interviews of six NBFC-P2P founders and 12 Fintech and P2P
industry experts. These interviews were used as alternate sources of
evidence for data triangulation along with within case analysis, cross-case
analysis to achieve well-rounded results.

Findings
The findings have been propounded in the form of unique, context specific
results achieved with a bouquet of six NBFC-P2P cases and supplemented
through triangulation of data done through multiple industry experts.
Findings indicate that AI has reached that tipping point in India.

Research limitations/implications
There is a scope of further refinement of our results with a larger sample
size. Therefore future researches could consider conducting a
comprehensive study including all existing NBFC-P2Ps in the space.

Practical implications
The research builds perspective for improving the practice in many ways. It
shows the way to the other P2Ps still stuck to manual underwriting and see
merit in AI-driven processes. It would guide them to embrace new
technology driven business models to enhance customer experience and
champion service transformation by making financial processes faster and
secure. It also highlights how some of the P2Ps are scaling up and
improving their visibility and outreach through strategic partnerships.
Social implications
The research would assist in creating awareness about the unique P2P
sector and AI solutions for individual investors, particularly the “new to
credit customers” and “thin file borrowers”. AI led initiatives in the P2P
space validate a certain amount of sophistication thereby giving sanctity to
the sector and would therefore enforce confidence in the minds of new age
investors and borrowers.

Originality/value
This original research unravels avenues for novel and untraversed area in
the Indian settings where paucity of extant literature and structured data
highlighted a research gap and hence necessitated this study. AI as a form
of disruptive innovation offering predictive intelligence to the Indian P2P
space and empowering it with process efficiency, cost optimization and
client engagement is definitely paving the way for an exponential growth in
the Indian Fintech Industry.