BharatPe is Revolutionizing Fintech with AI-Driven Solutions

In a conversation with Ritesh Mohan Srivastava, Chief Data Scientist, BharatPe

Ritesh Mohan Srivastava is the Chief Data Scientist at BharatPe, which simplifies payment acceptance for merchants by providing them with a unified QR code that supports multiple payment apps, including popular platforms like Paytm, PhonePe, Google Pay, BHIM, and over 150 other UPI apps. With over 15 years of experience as a Data Guru, Ritesh has led ground-breaking projects across various industries and geographies, including retail, pharma, fintech, and more. His impressive track record includes spearheading the launch of innovative data-enabled products and delivering exceptional analytical solutions. At BharatPe, Ritesh drives the Data Science Team, playing a pivotal role in harnessing data to generate profound insights that drive company growth. In this exclusive interview with Analytics Insight, we dive into Ritesh's insights on the role of artificial intelligence in the fintech sector.

1. Can you brief us about the company, its specialization, and the services that it offers?

BharatPe is a leading fintech company in India, specializing in providing digital payment solutions and financial services to millions of offline merchants and kirana store owners across the country. Our core objective is to streamline and digitize the payment process for merchants nationwide. BharatPe offers a comprehensive range of services tailored to meet the diverse needs of merchants. Our QR code-based payment solution enables businesses to effortlessly accept payments from a large number of payment apps. Additionally, it also offers POS machines for the acceptance of payments via debit and credit cards.

Furthermore, BharatPe empowers merchants by providing them with easy access to working capital loans of up to Rs. 10 lacs, ensuring smooth cash flow management, and meeting immediate business requirements. These loans are hassle-free and require minimal documentation. Additionally, the merchants have the option to pay via Easy Daily Installments (EDI) instead of paying up a lump sum amount at the end of the month.

BharatPe also ventured into the consumer fintech space with the launch of Postpe, one of India's fastest-growing BNPL products, in the second half of 2021. Postpe has over 8 million downloads and an annualized TPV of close to INR 50B+. In October 2021, the consortium of Centrum Financial Services Limited (Centrum) and BharatPe, was issued a Small Finance Bank (SFB) license by the Reserve Bank of India (RBI). In January 2023, BharatPe Group received an in-principle nod from the Reserve Bank of India (RBI) to operate as an online payment aggregator. Additionally, it recently announced that it has acquired a majority stake in Trillion Loans, a renowned NBFC based in Mumbai.

BharatPe has a network of 1 crore merchants across 400+ cities, the company is a leader in UPI offline transactions, processing 300 million+ UPI transactions per month (annualized Transaction Processed Value of over US$ 24 Bn in payments). The company has already facilitated the disbursement of loans totaling close to INR 80B+. BharatPe's POS business processes payments of over US$ 3.5 bn annually on its machines. 

2. According to you, what are some notable achievements, recognitions, awards, and client feedback that you feel are notable and valuable for the company?

BharatPe has received prestigious awards and recognition for its significant contributions to the fintech industry over the course of the last 4+ years. Recently, it was awarded  'Financial Inclusion Startup of the Year' at Bharat Fintech Summit 2023. The company won the 'Best MSME Financing Institution' at the BusinessWorld Emerging Business Awards 2022. It was awarded the 'Excellence in Business Lending Award' at the 12th India Digital Awards By IAMAI 2022 and the 'Best Digital Lending Platform' at the Business World Festival of Fintech Awards 2021.

BharatPe was declared winner in the 'Lending category' at the NASSCOM India Fintech Awards 2020. It won Gold in the 'Excellence in Payments' category at IDA 2021 by IAMAI. It was also the sole winner in the fintech category at the National Startup Awards 2020.

3. What are the major challenges the company has faced till now?

BharatPe was a late entrant in the fintech space. However, with our disruptive product- India's first interoperable UPI QR, we were able to break through the clutter from the word go. The initial challenge was also around the adoption of digital payments by offline retailers and BharatPe, with its interoperable UPI QR with zero transaction fees, played a vital role in enabling offline merchants to use digital modes for payment acceptance.

Additionally, when we decided to venture into the POS category, we realized that this is a highly competitive market with established players. We launched BharatSwipe, our POS machine with zero rental and it was a great success. In fact, over 50% of our merchant base included merchants that were first-time users of POS devices.

Fintech is a highly competitive market and hence, it is imperative for companies to disrupt and innovate so as to be ahead of the competition. While we do so, we ensure that we follow all guidelines and compliances. Additionally, for any new product, there could be challenge around trust and adoption. 

4. What is the role of AI in extracting valuable insights from vast amounts of financial data?

At its core, AI helps in analyzing huge sets of data to identify current trends as well as forecast the expected change in market dynamics/ customer behaviour. In the context of lending, this means using algorithms to analyze a wide range of data points, such as credit history, income, employment status, and spending habits, so as to determine a borrower's creditworthiness and in turn, take the decision of giving the loan/ decide on the eligible amount.

AI enables fintech/ financial services companies to run credit-scoring AI models to better predict the credit potential for those with little or no credit history data. It can help lenders assess a borrower's risk more accurately by analyzing data that is not included in a traditional credit score, like whether the borrower spends on necessities or luxuries. AI algorithms can even analyze a borrower's social media activity, online shopping habits, and even the types of websites they visit, in order to build a more complete picture of their financial behaviour.

Another way that AI is helpful is in sending personalized offers and communication to customers. Consumers today want to be understood as individuals, and they expect service based on their unique needs. Thanks to AI, the gap between customer expectations and a company's personalized offering is bridging. This new customer-centric approach is a big shift from the product-centric approach that companies used to follow in the past.

5. How BharatPe leverages AI algorithms to analyze customer behaviour, detect patterns, and generate actionable insights for strategic decision-making?

 At BharatPe, we leverage powerful AI algorithms to analyze customer behaviour, detect patterns, and generate actionable insights for strategic decision-making. By utilizing AI, we process vast amounts of customer data and uncover valuable trends and preferences. These algorithms help us understand customer purchasing patterns, identify cross-selling and upselling opportunities, and personalize our offerings to meet their specific needs. With AI-driven predictive analytics, we can forecast future customer behaviour and make informed decisions regarding inventory management, marketing campaigns, and business expansion strategies. By harnessing the potential of AI, we gain a deeper understanding of our customers, enhance their overall experience, and drive business growth through data-backed decision-making.

6. What are the strategies and initiatives that BharatPe is undertaking to stay ahead of these trends and address the challenges effectively?

At BharatPe, we are proactive in adopting strategies and initiatives to stay ahead of the curve and offer the best to our customers, without compromising on security. We invest in advanced technologies, such as artificial intelligence and machine learning, to enhance our data analytics capabilities from time to time. Our dedicated team of experts continuously monitors and evaluates the latest trends, understands the customer nuances, highlights aberrations, and helps the team prepare better for the coming times.