Using artificial intelligence for finance credit decisions
In finance, the Credit is the king. According to a recent study, it was found that 77% of the consumers used to prefer making payments with a debit or credit card as compared to only 12% of the people who favored using cash. But the easier payment options are not the only reason that the availability of credit is considered to be important for the consumers.
Having good credit helps in receiving financing options, landing in good jobs and renting a property, to name a few examples. Having many of the life's important necessities dependant on the credit history, the approval process for the loans and cards is considered to be more important than ever now.
The Artificial intelligence solutions are assisting banks and credit lenders to make smarter underwriting decisions by making use of a variety of factors that can accurately assess the traditionally underserved borrowers, such as millennials, which are present in the credit decision-making process. Let's have a look at some of these :
ZestFinance is the creator of the famous Zest Automated Machine Learning (ZAML) platform. It is an AI-powered underwriting solution that helps the companies to assess the borrowers with almost little to no credit information or history.
This platform makes use of thousands of data points and offers transparency which the other underwriting systems are not able to. This helps the lenders to better assess the populations which were traditionally considered "at risk." The ZAML is an end-to-end platform that several institutions can implement and scale easily and efficiently.
DataRobot offers machine learning software for the data scientists, software engineers, business analysts, executives as well as IT professionals. DataRobot aids the financial institutions and businesses to quickly build accurate and predictive models that enhance the decision-making process around issues such as fraudulent credit card transactions, direct marketing, blockchain, digital wealth management, lending and much more.
3. SCIENAPTIC SYSTEM
In addition to other financial-based services, the Scienaptic Systems offers an underwriting platform that gives the banks and the credit institutions more transparency while cutting down their losses.
Scienaptic's Ether connects the myriad unstructured and structured data and smartly transforms the data, which allows you to learn from each interaction and also offers contextual underwriting intelligence.
Underwrite.ai analyzes thousands of data points from credit bureau sources to assess credit risk for the consumer and the small business loan applicants. This platform acquires the portfolio data and applies machine learning to find out the patterns and to determine the good and bad applications. Due to its accuracy, Underwriter.ai can reduce the number of defaults up to 25-50%.
Thus it can be seen that there are a great deal of artificial intelligence applications that help organizations to understand and take important finance related decisions. They help organizations to foresee and Forecast the future and take an appropriate decision in the right manner.