Artificial intelligence to reduce the number of bad debts

Credit organizations are developing technological solutions to optimize their performance. Recently, artificial intelligence (AI) has been at the heart of this strategy to meet the need for speed. But not only, since professionals use AI to assist in decision-making to grant or not the funding.

 

An expert support tool

debt loan

Science fiction films are still a long way off, but the deployment of new technologies undeniably brings to mind the great references of the Seventh art. This is the case with artificial intelligences which have had an essential place in banking establishments for many years already. They intervene to simulate an analysis in order to identify the level of risk when applying for a loan. A system that works thanks to powerful algorithms that require a long development process.

These expert tools help in decision-making by taking into account the borrower profile and by measuring the credit risk that an establishment incurs in the event of acceptance of a file. However, the process still requires human intervention. Automation becomes obsolete once the analysis is finalized. This means that the final decision on the credit agreement will always rest with an advisor. Artificial intelligence is therefore assimilated to a support tool which helps to optimize decisions.

 

AI at the service of risk and speed control

AI at the service of risk and speed control

In addition, artificial intelligence will then optimize risk management by using a sharp analysis by crossing a maximum of information, on the basis of homogenized criteria. Fast assembly (up to 20 times faster than a human) made possible by algorithms and computing power. A performance that an advisor cannot have without a thorough study which necessarily takes a lot of time. While temporality is a major strategic issue on the side of advisers but also of clients.

As a result, AI helps reduce the number of bad debts and increase profitability over the long term. And thanks to a richer flow of information, professionals are also able to rationalize their capital provisions via a better adjustment. This is already visible in the bank balance sheets of certain brands. They therefore gain in commercial efficiency and productivity. And this speed of processing customer requests generates satisfaction, much sought after by banking establishments.

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