More loans mean more clients, right? Yes! And that’s all well and good, but not so much so if they’re not profitable for your organization. When automating your loan origination process, it’s vital to include one key component — a credit scoring system. Better yet, an AI-powered one. Without it, you could find yourself overwhelmed by […]
Recently great scientists have been expressing negative concerns and even fear of AI. Physicist Stephen Hawking told BBC that “the development of full artificial intelligence could spell the end of the human race [1]”. Even though fear of intelligence in defense software development is completely justified, its implementation in other domains is far less dangerous. […]
When it comes to credit risk management, do you want to do the bare minimum to please the regulators, or do you want to provide a superior service to your clients, and improve credit risk management across your enterprise? Hopefully, you chose the latter. So then, what is the best way to manage credit risk? […]
If the credit history is the only criteria that you’re using for deciding a client’s loan risk, you could be missing out on a wealth of potential clients. In the US, 26 million Americans have no credit score. So, when it comes to loans and lending, they are invisible. On top of this, another 19 […]
Traditional credit scoring with scorecards, linear models, and FICO scores has run its course. Borrowers with a weak credit history might be financially wealthy and make monthly payments without delays. But they’re overlooked due to the standards of outdated scoring models. To get a loan from a traditional-operating bank, a potential borrower needs a credit […]