ItemConference Paper

Federated and Explainable AI Models for Secure FinTech Transactions in Digital Manufacturing Supply Chains

Title
Federated and Explainable AI Models for Secure FinTech Transactions in Digital Manufacturing Supply Chains
Creator
Sistla, Swetha; Sankaran, Mohan; Jooluri, Nagaraju; Shruthaalaxmi; Devesh, Sonal; Vaz, Sonia
Description
Digital manufacturing supply chains are becoming increasingly dependent on inbuilt FinTech services to perform automated payments, invoicing, and settlements which presents sensitive financial and operational data to security and privacy threats. This article is an empirical paper concerning the application of Federated Learning (FL) and Explainable Artificial Intelligence (XAI) in securing FinTech transactions in decentralized manufacturing supply chains. The suggested framework will facilitate joint fraud and anomaly-related detection without exchanging raw data between supply-chain participants. Different privacy mechanisms such as client-level and secure aggregation are integrated to safeguard sensitive data and minimize the risks of inferences. Explainable AI methods are used such as SHAP, local surrogate models, to enable transparency and auditability as well as regulatory compliance. Experimental evidence has shown that federated models can attain almost centralized detection accuracy with much stronger privacy guarantees and explainability procedures can give insightful and interpretable information about model decisions. The paper identifies the trade-offs between accuracy, privacy, and computational overhead and concludes that federated and explainable AI provides a convenient, secure, and compliant solution to FinTech-enabled digital manufacturing ecosystems. 2026 IEEE.
Source
2026 Innovations in Machine, Engineering, and Digital Conference, IMED 2026;
Date
01-01-2026
Publisher
Institute of Electrical and Electronics Engineers Inc.
Subject
Explainable Artificial Intelligence; Federated Learning; FinTech; Manufacturing; Supply Chain
Coverage
Sistla S., FinTech & Ai Solutions Infosys Limited, Richmond, 23060, VA, United States; Sankaran M., Software Engineering PayPal Inc., 94555, CA, United States; Jooluri N., Incode Technologies, Software Engineering, 20148, VA, United States; Shruthaalaxmi, University of Toronto, Department of Public Policy And Statistics, Toronto, Canada; Devesh S., Christ University (Deemed To Be University), School of Business And Management, Karnataka, Bangalore, 560073, India; Vaz S., Rosary College of Commerce And Arts, Department of Economics, Goa, Navelim, 403707, India
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISBN: 979-833156997-6;
Format
online
Language
English
Type
Conference paper

Citation

Sistla, Swetha; Sankaran, Mohan; Jooluri, Nagaraju; Shruthaalaxmi; Devesh, Sonal; Vaz, Sonia, “Federated and Explainable AI Models for Secure FinTech Transactions in Digital Manufacturing Supply Chains,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 19, 2026, https://archives.christuniversity.in/items/show/26156.

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