Artificial Intelligence is positively impacting the financial lives of consumers – especially those who are underbanked and underrepresented in Mexico and LatAm.
Krishna Venkatraman, Chief Data Officer at Kueski, tells Digital Journal about the role AI has played in fintech innovation, boosting financial inclusion in emerging markets and what’s to come for AI in financial services.
Digital Journal: First, can you tell us about Kueski and your role?
Krishna Venkatraman: Kueski is the leading buy now, pay later (BNPL) and online consumer credit platform in Latin America. The company was founded in 2012 and is known throughout Mexico for its innovative financial services and remains laser-focused on its roots and the Mexican people. Mexico remains a cash-based economy, with more than half of the country still unbanked, and we understand better than any non-native incumbent the impact greater financial inclusion has on the country and in connecting people to the formal economy.
We facilitate greater access to financial products for customers through our two products – our flagship product, Kueski Pay, which allows customers to make purchases and pay later, both online and in physical stores. We also offer Kueski Personal Loans, a consumer lending product.
AI and machine learning have always been the backbone of our products and as Chief Data Officer at Kueski, my focus is largely on reimagining how we can use AI not only to reap benefits internally but also to boost financial inclusion and gain consumer trust. By applying AI, Kueski enhances access to financial services at scale by analyzing large sets of alternative data to better determine the creditworthiness of consumers.
DJ: What trends are you seeing in AI adoption across the financial sector in LatAm?
Venkatraman: AI adoption in the LatAm financial sector is significantly enhancing employee productivity and response times to customer requests, data accessibility, and security. AI tools automate repetitive tasks, allowing employees to focus on higher-value initiatives, like customer engagement, resulting in better job efficiency as well as customer satisfaction.
Through the power of AI systems, analyzing vast amounts of data quickly makes it easier for employees and systems to access relevant information. This ensures better-informed decision-making and accurate, timely responses to customer inquiries. With AI-driven insights and real-time data access, chatbots and virtual assistants can handle routine queries, not only freeing up employee time for more complex tasks but also providing immediate responses for customers.
Another benefit of AI’s ability to quickly analyze large datasets is to detect unusual patterns and behaviors that may indicate fraudulent activity. Leaning on AI to focus on combating fraud and managing risk by identifying patterns and behaviors also increases consumer trust in the technology. The integration of AI in the financial sector not only streamlines operations but also enables fintechs to deliver better service and offer more secure solutions.
DJ: What role does AI play in personalizing BNPL offerings to meet the diverse needs of customers?
Venkatraman: What approach is Kueski taking to leverage AI in its offerings? How is Kueski’s approach to AI impacting the greater economy? Personalizing products, especially for BNPL, by analyzing customer data to tailor financial solutions that meet individual needs has been a crucial role for AI in financial services. Machine learning algorithms can analyze customer behavior, spending or payment patterns, and credit histories to offer personalized BNPL payment plans that align with users’ financial situations. These models can continuously learn from customer transactions and payment histories, adjusting offers in real time to better fit changing financial circumstances. For lenders, AI enhances risk evaluation by assessing a wider range of factors beyond traditional credit scores, enabling more accurate lending decisions.
In underbanked and underserved communities like Mexico, the use of AI by companies like Kueski fosters greater participation in the financial system. We are able to leverage AI to bridge financial gaps in Mexico’s emerging market by connecting consumers to the formal economy through more accurate assessments of creditworthiness – especially for those without traditional credit histories.
DJ: Which emerging AI trends will most significantly impact financial inclusion in Mexico and LatAm?
Venkatraman: There are several ways AI is boosting financial inclusion in Mexico and LatAm. AI can be used to more clearly navigate fintechs, making it easier for people with varying levels of financial literacy to understand and use financial products. This reduces intimidation and encourages more individuals to engage with financial services. By prioritizing user experience, financial institutions can leverage AI to significantly broaden their customer reach, ultimately fostering a more inclusive financial landscape.
AI in underwriting is also having a positive impact on financial inclusion in transformative ways in Mexico and LatAm. This includes assessing creditworthiness for individuals with little or no credit history—allowing them access to loans and financial products, streamlining approvals for consumers and lenders to establish creditworthiness quicker, and personalizing products to increase the likelihood that underserved populations will find suitable options that fit their financial needs. Overall, AI is democratizing access to financial products, empowering more individuals to participate in the formal economy and therefore, boosting financial inclusion in emerging markets.
DJ: How is the global regulatory landscape influencing the development and deployment of AI technologies in the financial sector?
Venkatraman: In 2024, we’ve seen several “first-of-its-kind” AI regulations beginning to surface. For example, the implementation of the EU AI Act and the proposed California AI bills. These regulatory actions are the result of an increasing awareness of the power of new AI models, their rapid proliferation and their widespread use in society. Ultimately, these guidelines are attempts to preserve a path for ongoing innovation and the potential for extraordinary benefits to society and to also limit the substantial damage that these technologies can wreak in the hands of malicious or bad actors.
I expect we will see a period of sustained regulatory activity and adaptation as agencies attempt to strike the right balance between enforcing regulations and encouraging innovation. Especially as AI evolves rapidly, the impact of regulations will become more apparent. One of the hardest things to address is the risks due to deliberate or accidental misuse of the models without impeding innovation and the potential upsides to society.
A balanced, settled regulatory landscape will bring more certainty and stability to companies seeking to use these technologies while also reassuring society that risks have been obviated. While we are in the early stages of this process, these guide rails will foster both innovation and adoption.
DJ: To close us out, what do you see as the future of AI in emerging countries as we look ahead to next year and beyond?
Venkatraman: While the AI hype cycle has been winding down, the excitement and momentum around AI in financial services will not go away anytime soon. We’ll continue to see AI drive financial inclusion further, streamline underwriting and lending processes quicker, and personalize offerings better. We’ll of course also see new ways in which this cutting-edge technology will be used. For example, an exciting initiative fintechs are experimenting with is voice control integrations. With the rise of chatbots and voice assistants, AI can facilitate personalized experiences through voice commands, allowing users to easily access payment options, check balances, and get recommendations, making the process even more user-friendly.
To conclude, fintechs at the forefront of AI innovations, including Kueski, will keep reimagining how AI technology can be used to transform the financial sector. Emerging markets, such as Mexico, have the most to benefit from these transformative initiatives and will see continued growth throughout 2025 and beyond.
