Paisalo Digital Unveils AI-Driven Customer Profiling & Fraud Detection System

Paisalo Digital, a systemically important non-deposit-taking NBFC, has unveiled an advanced AI-powered customer profiling and fraud detection framework to strengthen its credit risk management ecosystem. This new system is designed to enhance underwriting accuracy, mitigate fraud and enable more reliable lending decisions for underserved customers across semi-urban and rural India. Under the new system, every customer, guarantor and co-borrower is assessed as a distinct financial identity. The AI engine detects duplicate identities, monitors cumulative exposure limits and flags high-risk patterns. This approach provides greater transparency into borrower histories and helps prevent overlapping liabilities that could otherwise compromise repayment capacity or signal concerns about loan intent.

This comes alongside the rollout of Paisalo’s GenAI-based calling system, an automated platform that enhances the loan recovery process and borrower communication. The framework will be integrated across Paisalo’s secured and unsecured lending verticals, including Micro Loan Against Property (Micro LAP), Income Generation Loans and MSME financing. This technology also enables dynamic customer scoring by analysing multiple data parameters, including repayment behaviour, asset ownership, demographic attributes, income stability, Bank transactions and collateral linkages, enabling tailored lending decisions without compromising financial inclusion goals. The launch comes at a time when India’s financial services landscape is rapidly evolving, and digital riskassessment tools are becoming indispensable for secure and scalable lending. With growing demand for secured and small-ticket credit, robust fraud-prevention mechanisms are crucial to sustaining long-term growth and maintaining customer trust.

Commenting on the initiative, Santanu Agarwal, Deputy Managing Director, Paisalo Digital, said, “AI-driven risk assessment is not just a technological milestone for us; it reinforces the foundation of responsible lending. By treating each customer, guarantor, and co-borrower as distinct individuals, our system ensures fairness in decision-making, transparency in evaluation, and early detection of risky patterns. It reflects our commitment to strong governance and prepares us for the next era of digital credit, where intelligence and accuracy will define industry leadership.”

About the Company

Paisalo Digital Limited is engaged in the business of providing convenient and easy loans to the financially excluded at the bottom of India's economic pyramid. The company has a wide geographic reach, with a network of 4,380 touchpoints across 22 states & UTs in India. The company’s mission is to simplify small-ticket size income generation loans by establishing ourselves as a trusted, high-tech, high-touch financial companion for the people of India.

Paisalo Digital Limited reported a strong financial quarter ending September 30, 2025, with Assets Under Management (AUM) growing 20 per cent year-over-year (YoY) to Rs 5,449.40 crore, driven by a 41 per cent YoY increase in disbursements to Rs 1,102.50 crore. Total Income rose 20 per cent YoY to Rs 224 crore, complemented by a stable and healthy asset quality with Gross NPA at a low 0.81 per cent and strong collection efficiency of 98 per cent. The company's expansion efforts increased its reach to 4,380 touchpoints across 22 states. They expanded their customer base by 1.8 million during the quarter, while maintaining a robust financial position with a Capital Adequacy Ratio of 38 per cent and a 19 per cent YoY growth in Net Worth to Rs 1,679.90 crore.

The stock is up over 30 per cent from its 52-week low of Rs 29.40 per share. The company has a market cap of Rs 3,400 crore, and as of September 2025, SBI Life Insurance Co. Ltd. owned a 6.83 per cent stake.

Disclaimer: The article is for informational purposes only and not investment advice.