India plays an important role in our R&D work: FICO CPTO Bill Waid

Fair Isaac, the US-based data and analytics company better known as FICO, provides its technology to some of the largest global companies to drive digital transformation. A significant portion of this development work, and research and development (R&D) is carried out in India, in Bengaluru, according to Bill Waid, chief product and technology officer at FICO. In a video interview with Peerzada Abrar, Waid discusses the pivotal role India will play in FICO’s technological advancements and the company's plans to expand its operations, including enlarging its R&D team in the country. Edited excerpts follow:

What are the technology bets that FICO is making for the next couple of years?

We have been engaged in artificial intelligence (AI) and machine learning for some time. A key aspect of our approach is operationalising these technologies, evident in our 130 patents in this area. We not only run them to make decisions, but also do so at scale. For instance, for our clients, we manage more than 10,000 transactions per second, with latencies under 50 milliseconds. Every time a card is swiped or someone applies for a loan, decisions are made in real time. We process petabytes of information per client each month. Our investments are extensive in our data infrastructure and management, adhering to global privacy regulations. As our business sectors are highly regulated, transparency in our operations is crucial. Our investments also extend to user-friendly interfaces, explainability, simulation, and reporting, which are vital areas for us.

What role do you see India playing in bringing your technology bets to fruition?

We have over 120 global companies out of 300 using the FICO platform and driving digital transformation. A large chunk of that development work and the R&D is based out of India, in Bengaluru. Approximately a third of our workforce is located there. Our Bengaluru team, comprising nearly 1,300 employees, is involved not just in backend engineering but in full-scale innovation. They have contributed to numerous patents and have been part of FICO since 2003, growing at an average of 12 per cent annually. We currently have over 100 open positions in Bengaluru, specifically for our engineering team. The work encompasses core engineering, innovation, operations, data science, security, and cloud operations. Our primary development and operation centres are in the UK (Birmingham), Mexico (Guadalajara), and India (Bengaluru). We recruit from top universities, and 400 of our Bengaluru employees hold advanced degrees. They are instrumental in building our technology on a global scale.

What impact do you see generative AI having on businesses?

Our use of generative AI (GenAI) for synthetic data generation, especially in training machine learning models, opens up numerous expansion possibilities. This technology enables our clients to utilise our platform more efficiently. Processing millions of transactions daily, we leverage a vast data flow through our platform. By understanding our clients' policies, we can provide interfaces that enhance their business operations. GenAI applications are particularly potent in scenarios where clients wish to introduce new products and examine their potential outcomes. Our focus in this area is primarily in the R&D space, as our work with highly regulated organisations necessitates a high degree of transparency and security. We are also investing in 'explainable AI' (XAI) to apply these principles to GenAI.

What opportunities do you see in the Indian market?

The advent of Covid-19 accelerated two main aspects of our business. Institutions recognised the necessity of digitising their customer outreach and internal operations, especially when remote IT resources were required. This need for digital transformation has significantly driven the adoption of our FICO platform. India, with its relatively low credit card issuance in a population of 1.4 billion and a robust digital business and payment environment, is uniquely positioned. This digital landscape is crucial for unlocking digital engagement. While most banks operate on decades-old core systems, fintech companies are unencumbered by such legacy issues, allowing them to lay a fresh foundation for consumer analysis and AI application. However, as fintechs evolve, they might face challenges similar to traditional banks. Our approach is to integrate our solutions with existing banking systems, enhancing business agility and customer experience. India's rapid digital progress and achievements are notable, and we see substantial potential in the market.

With the increase in online payments, how can technology address the rising cybersecurity and privacy issues?

The payment industry is undergoing significant transformation, with a surge in different digital payment methods. Concurrently, retail banking faces various security challenges. Cybersecurity is a top priority for financial institutions globally, especially in the context of AI processing and privacy concerns. Our focus is on designing systems that can remove consumer data upon request, including from machine learning models, a capability many organisations lack. Our systems are designed with encryption, authentication verification, audit histories, and security alerts. Extensive time has been invested in ensuring our systems scale effectively while meeting privacy and security requirements.