By using big data, AI to detect fraud at PSU banks
According to Economic Survey, setting up of a PSB Network to enable banks to take more informed decisions on credit underwriting, and it also says that, banking sector must scale up by increasing Indian economy to support growth and development.
In the next five years, growth and efficiency of state-owned lenders, which account for over two-thirds of the banking space, for India to become a $5-trillion.It was proposed that setting up of a PSB Network (PSBN), along the lines of the goods and services tax network (GSTN), which can enable use of big data, artificial intelligence and machine learning, to help monitor lending decisions, especially to large corporates.
Banks should also introduce employee stock ownership (ESOP) scheme and link it to the performance of employees, as per the survey. By using PSBN, they will be able to take more informed decisions on credit underwriting, which in turn, will reduce the burden of bad loans, besides preventing fraud.
The survey said that, a long-term solution to this problem is enabling employees to own stakes in the PSBs. Adding to this they all said, government as the promoter must set up this entity that will aggregate data from all PSBs to enable decision making using big data techniques.
