Advances in artificial intelligence (AI) are expanding financial inclusion for individuals and micro, small- and medium-sized enterprises (MSMEs) that have been underserved by traditional banking institutions, according to the World Bank.
The lender, in its latest World Development Report, titled The Promise of Artificial Intelligence, said AI can create opportunities for MSMEs to access financial services through credit-scoring models.
Nigeria was among the countries covered by the World Bank Enterprise Survey on AI Adoption, with 777 Nigerian firms included.
According to the Bank, AI-driven scoring models leverage alternative data, such as mobile money transactions, digital payment data, e-commerce activity, and records of utility and telecommunications use, to assess the creditworthiness of borrowers without formal credit histories.
“These models are also more dynamic than rule-based ones because they can learn from borrowers’ behaviour,” the lender said in its development report.
