World of finance is benefiting from new innovative services
With the development of fintechs in recent years, the world of finance is benefiting from new innovative services. An introduction that touches a multitude of features and gives businesses and users new opportunities. With the development of artificial intelligences, some professionals are starting to use them to automate the study of consumer credit application files. A revolution that already wins first conclusive results.
Financial innovations are in full swing
In the digital age, technology is becoming more and more important in the organization of the professional world. And finance is an area that has made considerable use of these tools to increase the performance of its activities. Indeed, a new industry that merges the business of finance and technology has emerged. These rather specific companies, often called “fintechs”, are courted by large groups, including banks, for the services they offer.
Through acquisitions, banking institutions are able to obtain the tools developed by these innovative companies. The purpose of these buybacks is to integrate technologies to improve financial performance. And recently, credit professionals have started artificial intelligence (AI) programs to process consumer credit applications.
Automation of the processing of credit applications
Currently in the experimental phase, this new method of analysis works thanks to powerful algorithms. These measure the profile of a borrower but also its solvency over the long term. Once a profile is studied, a color code will then translate the level of risk in case of acceptance of the loan for consumption. Nevertheless, this method is not automated until its finalization since the final decision to grant the funding will always depend on a human will. It is also a mandatory rule that institutions in the European Union must respect.
Now, AI brings many benefits to both customers and professionals. As a first step, the AI provides significantly reduced processing time for requests. A speed that causes in return a satisfaction of the customers, but also an improvement of the internal processes of the credit organizations. Finally, this technology has made it possible in the immediate future to optimize the rate of credits entered into unpaid by approximately 25%. A tool with interesting potential against loans that can turn into doubtful debt. In return, professionals gain in competitiveness and profitability.