Getting your Trinity Audio player ready...
How are AI models reshaping consumer lending decisions today?
“AI is revolutionising the consumer lending landscape, embedding advanced capabilities throughout the lending lifecycle. From predictive analytics that assess creditworthiness using open-banking data, to real-time fraud detection and process automation, AI models expedite approvals and reduce human error. These models can uncover complex, nonlinear relationships in data, far beyond what traditional statistical models like logical regression can detect.
“At Slalom, we’re witnessing the transformational impact of Generative AI, which introduces inductive reasoning, enabling lenders to transition from prediction and into problem-solving and personalisation. One of the more exciting frontiers is the use of AI to tap into previously ‘invisble’ borrower segments, or individuals with limited or no credit history.
“While companies like Petal and Upstart have already begun to analyse cash flow, education history or unemployment trends to assess creditworthiness, we’re also seeing the emergence of even more nuanced models. For instance, some lenders are now experimenting with smartphone metadata, like app usage or even typing speed, to augment loan risk profiles in unbanked regions.”
