The rise of AI technology and deepfakes pose a large risk to the financial services industry.

The tipping point for Indian financial services businesses was when onboarding became completely digital, thanks to Aadhaar, etc. For businesses onboarding a new customer, an important aspect is ensuring that the documents and the person opening the account are real.

The normal process that’s followed today is to fetch the ID or address proof data from the source using Digilocker and or Aadhaar. Also, match the face from this ID proof with the person opening the account through a webcam. Today, we have a bunch of checks in place to check for liveliness and if the other person is real or not.

But as the deepfakes improve, I think it will only become harder over time to validate if the person on the other side is real or AI-generated. This problem will be bigger for banks that have more stringent regulatory requirements during onboarding.

It will be interesting to see how the regulations around this evolve. Going back to the physical way of opening accounts will bring the growth of the entire sector to an abrupt stop.

And the video isn’t me; it is a deep fake. 😬

Go to link →