How Can AI Access and Harness Your Data

Technologies like artificial intelligence (AI) and machine learning (ML) have replaced traditional computing, transforming how several industries operate and conduct business. AI uses computers and algorithms to simulate human intelligence, while ML allows machines to learn from data with experience and time gradually. The deployment of AI in credit scoring, allocating credit, and risk has reshaped […]

Can Machine Learning Integration Improve Efficiency?

According to the Institute of International Finance, the most common use of machine learning (ML) technologies is credit scoring.  An increasing number of financial institutions are using ML technologies to make decisions on granting new credit, monitoring outstanding loans, early-warning systems, and refinancing non-performing exposures. A recent survey shows that 37% of the international institutions used ML models […]

The Power of Artificial Intelligence and Machine Learning in Credit Lending

Artificial intelligence (AI) is an umbrella term defining how different machines and algorithms simulate human intelligence and functions. Machine learning (ML), on the other hand, is a subset of artificial intelligence in which machines are programmed to process large amounts of data (beyond the human limit) and improve gradually with time and experience. Both AI […]

How to Successfully Leverage AI and Avoid Common Pitfalls

The proliferation of artificial intelligence (AI) technologies has offered companies, especially FinTech companies, a considerable possibility to develop and improve services. The use of AI can increase profits, improve the quality of customer services, reduce costs, optimize processes and increase the company’s efficiency. Artificial intelligence can improve several areas, including credit scoring, investment/asset management, underwriting, […]

How Explainable AI Looks to Overcome AI’s Greatest Challenges

With the proliferation of artificial intelligence (AI) technologies in different financial and IT industries, AI’s potential has only increased. As AI tools become more advanced, there is an increased possibility that most of the decision-making computations are done in a “black-box” with no human explainability. Explainability is the key to customer trust, especially in the […]

Automated Platforms: 5 Red Flags to Watch For

When it comes to automated lending and decision management systems, it is incredibly important to have a complete platform that is capable of answering almost every relevant lending question and adapting to your company’s needs. Here’s the top 5 red flags you need to watch out for and avoid when choosing your scoring solutions in […]

Subconscious Bias: The Silent Exposure to Non-Compliance

Could your lending practices be biased, even if you take steps to ensure that your inputs and systems are not using any prohibited factors? The answer is yes. According to the Consumer Financial Protection Bureau and Regulation B, even if you completely avoid all prohibited factors, your lending practice could be non-compliant if its outcomes […]

COVID-19 Has Revealed the Faults in Static Credit Scoring: Here’s How to Adapt

The conventional way of credit scoring, using a static model and historical credit performance, has been operating for decades, dating back to the 1950s. Even today, conventional credit scores are used by many financial institutions to inform their lending decisions, known as a quantitative way to assess creditworthiness. However, the old methods tend to lack […]

Harnessing the Reins of Powerful AI/ML Technology

Like a high-performance vehicle, automated scoring solutions are incredibly powerful engines that take you where you tell it to take you. Also like a high-performance vehicle, if you’re steering full-speed into a ditch, the machine will not know that and you will be virtually guaranteed to crash. In the lending industry, the end goal is […]

Pulling Back the Curtain: An Exposé on Credit Scoring

At face value, consumer credit scores, typically ranging in number from 300 to 850, are just that, three digits on a report that mean nothing to the untrained eye. To lenders, these three digits tend to be the holy grail of loan decisioning, giving insight into how likely a prospect is to repay a loan […]