In our latest whitepaper, Seven risk predictions for 2018, we explore which trends lenders are most likely to adopt to protect themselves, consumers and the global economies, whilst also going back to the most important aspect of any business: profitability. Here's our second risk prediction...
#2: AI to revolutionise credit scoring
Artificial Intelligence is big news. Every day generates a newsworthy advance – in self-driving cars, even smarter phones, self-learning thermostats. In healthcare, AI is transforming tumour identification, delivering better detection results than experienced oncologists.
So far, the credit industry has been slow to adopt. But many companies are exploring what AI means for them, and the regulators are watching with interest.
Advances in computing power and deep learning techniques mean it’s now possible to make use of Artificial Intelligence to squeeze more value out of predictive data. Now that AI is also capable of generating transparent, explainable models that can follow business rules, the regulatory hurdles to adoption are finally being met.
AI stands ready to revolutionise the way that credit scoring is undertaken: better, faster models, more regularly updated, with the business in control. With an eye on Open Banking, the availability of more data makes it imperative that lenders take a look at this trend in 2018.