Aftech: AI Can Prevent Frauds in Digital Payment

TEMPO.CO, Jakarta - Budi Gandasoebrata, chairman of the Indonesian Fintech Association (Aftech), underlined the crucial role of artificial intelligence (AI) in revolutionizing the digital payments industry. He said that one of the significant contributions of AI in digital payments is the ability to reduce fraud rates.

"AI can help reduce the level of fraud [by] detecting behaviors that may be related to fraud against the public," Budi said in the Casual Talk: Digital Payment Infinity discussion at the Indonesian Digital Financial Economy and Creative Work Festival (FEKDI KKI) at JCC Senayan on August 1. 

Through advanced algorithms, he said, AI is able to detect suspicious transaction patterns and provide early warnings. AI is also enriching customer service with the presence of chatbots that can answer user questions in real time and accurately.

Budi underlined the importance of collaboration between banks and fintechs in promoting the adoption of digital payments, especially among micro, small and medium enterprises (MSMEs). Budi said that with the availability of the Quick Response Code Indonesian Standard (QRIS) payment system, MSMEs can easily accept digital payments without the hassle of bringing cash to the bank.

Budi added that MSMEs do not need to worry about the transaction cost of digital payments. The central bank has issued a zero transaction fee policy for micro and small businesses.

"This is much more profitable and easier, and the cost is lower for them," Budi said.

He encouraged MSME players to get used to digital payments to support economic activities.