AI-Powered Solution Proposed for Digital Financial Inclusion of Migrant Workers
A proposal put forward by researchers at the Indian Institute of Technology Madras (IIT Madras) suggests integrating an artificial intelligence (AI) assistant into existing ATMs at banks and post offices to address the financial exclusion faced by migrant workers, a population comprising 3% [1] of India's populace, particularly highlighted during the Covid-19 pandemic.

Figure 1. AI and human.
Figure 1 is an illustration of AI and human. The lockdown underscored the digital gap, exacerbating the financial challenges for migrant workers. Their households suffered as they lacked funds for essentials, reflecting a broader issue of exclusion from various public services and amenities.
To tackle this issue, a study conducted by Pavan Ravishankar, Prof B Ravindran, and Prof P Sudarsan from the Robert Bosch Centre for Data Science and AI (RBCDSAI) [1] at IIT Madras delved into the digital financial inclusion problem of migrant workers and explored AI-driven solutions.
Prof Ravindran emphasized the advantages of an AI-enabled interface for financial transactions, particularly for those without smartphone access. Integrating AI into public infrastructure can build trust in digital transactions, with features like voice biometrics and passwords ensuring security, ultimately empowering marginalized communities. [2]
During the Covid-19 lockdowns, migrant workers faced difficulties in transferring money and receiving financial aid, resorting to informal channels like hawala couriers and friends. Many struggled to access emergency financial aid and rations.
Prof Sudarsan highlighted the technological barriers faced by migrant workers during the pandemic, with a significant portion owning only feature phones. Utilizing voice biometrics and passwords could circumvent the need for Aadhaar or ATM cards, fostering independence through an AI-enabled digital financial interface. [2]
The researchers proposed integrating AI assistants into existing ATMs to facilitate financial inclusion, particularly through conversational AI in vernacular languages, simplifying operations for workers during money transfer processes.
These findings, published in the 'Journal of Information Technology Case and Application Research', underscore the potential of AI in addressing the financial inclusion challenges faced by migrant workers.
Source: IIT Madras
References:
- https://www.financialexpress.com/business/digital-transformation-ai-can-empower-the-poor-iit-madras-researchers-3436248/
- https://indiaai.gov.in/news/iit-madras-researchers-unveil-how-ai-empowers-economically-disadvantaged-communities
Cite this article:
Hana M (2024), AI-Powered Solution Proposed for Digital Financial Inclusion of Migrant Workers, AnaTechMaz, pp. 377