Alif, a fintech and banking group rooted in Tajikistan with a UK-based holding company, has been making significant strides in expanding its international market presence since its inception in 2014.

Presently, Alif serves over 1.2mn clients in Tajikistan and Uzbekistan, offering a comprehensive array of financial services. Noteworthy products include Point-of-Sale (POS) financing, a marketplace, money transfers, and mobile and card payments. With a run rate revenue of $64mn, Alif is positioned as a market leader in Tajikistan and experiences rapid growth in Uzbekistan.

Global expansion into Pakistan and UAE

Alif's horizon extends to the markets of Pakistan and the UAE. In Pakistan, the company is actively collaborating with local brands to introduce Buy Now, Pay Later (BNPL) services, providing Pakistani consumers with flexible financial solutions. In the UAE, under the brand Alif Payments, the company promotes the Send Now, Pay Later (SNPL) product, catering to the financial needs of migrants in the money transfer sector with installment options, offering a practical solution to ease financial pressures.

Technological transformation driving success

The success of Alif can be attributed to its adept use of cutting-edge technology to revolutionize financial and banking services. The company has tailored sophisticated fintech solutions by understanding local needs and consistently reviewing its offerings. Recognizing the increasing effectiveness of Artificial Intelligence (AI), Alif has strategically applied AI in its services.

AI integration journey at Alif: A transformative approach

Initiating AI integration (2019-2021)

Discussions about implementing AI products at Alif began around 2019. At that time, Alif Group functioned as a regulated lending and deposit-taking institution in Tajikistan. The impetus for serious consideration of AI came after the establishment of Alif in Uzbekistan. The Uzbekistan market, being several times larger than Tajikistan's, prompted the exploration of AI to simplify the installment process. The team, aiming to automate credit analysis, initiated the development of its own Machine Learning (ML) scoring system, known as "GulChatAI."

Impact of ML on scoring system

By 2021, Alif's market share in Uzbekistan's POS-financing market reached around 30%, prompting the development of ML scoring. Currently, over 70% of all financing applications are processed using ML scoring, significantly reducing the rate of overdue payments. The success of ML scoring has improved the efficiency of the installment process, mitigated risks, and increased the share of automated operations, contributing to Alif's growth in Uzbekistan.

Expanding AI applications

In addition to credit scoring, Alif implemented an AI chatbot in Uzbekistan by the end of 2022 to streamline customer support. The chatbot autonomously handles almost 60% of daily inquiries, relieving pressure on the support team and maintaining high customer satisfaction.

Future AI endeavors (2024)

Looking ahead, Alif plans to expand the functionality of its chatbot by adding a generation module in 2024. This will enable the chatbot to respond more flexibly and naturally to user requests, enhancing the overall interaction experience. The company is also actively implementing optical character recognition and a Machine Learning recommendation system for its marketplace, alifshop.uz.

Alif's approach to AI technology

Alif employs AI technologies such as ML for credit scoring and goal-oriented chatbots. The credit scoring model, based on gradient boosting on decision trees, yields a high Gini index of 0.44. In 2024, the company plans to experiment with generative responses and develop its large language model for the chatbot, aiming for more personalized interactions.

Leadership transition and AI implementation

In January 2023, a leadership transition occurred, with a professional from the finance domain taking full responsibility for AI-related projects at Alif Group. The smooth transition was facilitated by gradual immersion in AI topics and prior experience in finance at Alif. An AI implementation strategy was devised, encompassing team expansion in Tajikistan and leveraging Uzbekistan as a pilot region for testing AI products.

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