AI Tech for Inclusive Lending and Better Marketing
Inclusive lending along with inclusive finance as a whole is gaining momentum and becoming an outstanding option of ESG activity, which also helps lenders make their offers more visible.
The technology partners of financial institutions understand the value of inclusive lending in full. Dmitry Dolgorukov, HES FinTech Co-Founder, touched upon this buzzing topic in his interview with Authority Magazine:
Financial inclusion is among the top three most discussed topics at fintech conferences, webinars, and meetups. This is what all financial software vendors need to keep in mind when offering their solutions, something that can help build a competitive advantage and meet social-oriented tendencies in digital offerings.
Studies clearly show that many applicants may face discrimination when applying for loans, such as higher interest or rejection rates. From the lender’s point of view, it is understandable, The key challenge here is non-performing loans (NPLs) that negatively affect the credit portfolio of banks and lending institutions. However, the frontier technologies are at their service and can help balance out the portfolio due to smart automated decision-making.
In this text, Dmitry provides main arguments about the importance of inclusive lending for lenders, borrowers, and the entire financial industry in general. Also, he researches the power of Artificial Intelligence for minimizing the risks and side effects of inclusive finance.
The research says there are more than 26 million people in the USA alone, who lack access to loans due to various reasons. It may happen because of no credit history, no opportunity to ensure a physical presence for the KYC procedure, or because of a different reason. However, AI is now powerful enough to take the challenge. It demonstrates significant results when cutting operating costs and automating business processes. Also, the use of AI and ML minimizes human involvement and human errors, thus improving the quality of loan decisions.Dmitry Dolgorukov, CEO at GiniMachine
In the full version article you will find:
- Challenges of AI usage in financial services
- Key benefits AI provides banks and fintechs with (such as expanded product range, higher level of automation, substantial changes in the application process, and more)
- Valuable statistics on the lending industry to think it over
Read the full article on the BAI website:
Bank Administration Insitute is a US-based non-profit organization helping financial industry leaders make smart business decisions for over 90 years. Today it provides unbiased advice, relevant information, and education to more than 30 thousand industry leaders worldwide.