Now, more than ever, it’s important for financial organizations to proactively serve their customers in a personalized and compassionate manner to help them deal with potential credit delinquency.

However, being able to intervene and help a customer – at the right time, in the right way and via a scalable approach – proves very difficult for most financial organizations.

We recently hosted a webinar with American Banker that broke down the widespread and timely challenge of credit risk and delinquency. Amyn Dhala, Vice President, Global Product Management, AI Express, Mastercard, shared with webinar attendees how AI can be leveraged to mitigate credit risk and improve customer experiences and services. Jim Ericson, Consultant and Information Management Editor Emeritus, served as moderator.

Lenders are looking for effective ways to manage credit risk

Current financial market trends show debt levels are trending upwards, posing both opportunity and risk for lenders. Aggregate delinquency rates remain steady; however, student, auto and credit card debt levels are rising, which could impact the system in the near future. Given the potential impact of these trends, lenders are looking for more effective ways to manage credit risk and help their customers, Amyn explained. AI systems are the only viable solution for financial organizations wanting to enhance current credit risk and financial fraud protection.

More specifically, Amyn shared with attendees how financial organizations have a significant opportunity to leverage AI to address critical pain points across the following core areas:

  • Credit risk management – A proactive approach is essential for risk management and satisfying customer needs.
  • Customer attrition – Without an all-encompassing view of customers, it’s difficult to predict who may be an attrition risk.
  • Fraud – Banks are vulnerable to risk vectors ranging from transaction fraud to money laundering.
  • Product recommendations – Optimizing product recommendations to be individually relevant and hyper personalized across a massive customer base is a challenging objective.

AI is the ideal solution to scalably manage risk throughout the customer lifecycle

Diving deeper, the webinar explored how AI can help to improve the customer experience, predict losses early, manage risk throughout the customer lifecycle and leverage data across an organization. Lenders can leverage AI in a variety of practical ways: predicting who will become delinquent, identifying credit abuse, improving transaction approvals, ATM withdrawals, ACH or wire, and helping borrowers with their finances.

Amyn and Jim discussed how Brighterion’s technology offers financial organizations the unique ability to build highly personalized AI models that adapt to new information and infinitely scale. Amyn walked through how AI Express quickly delivers a production-ready AI model that solves an organization’s immediate business challenge(s). The implementation is based on a tactical, problem-solving approach.

As Amyn explained at the end of the webinar, AI is a strong fit for any organization seeking to supercharge the impact of its data assets and analytical resources. To successfully kick off an AI-based credit risk initiative, organizations should follow three steps:

  1. Discuss the current challenges facing your lending organization that might benefit from AI.
  2. Determine the potential stakeholders to include in the process to maximize performance potential.
  3. Map out how AI can be part of your overall credit risk management strategy.

You can access a full replay of the webinar here. For more on how Brighterion’s AI solution can help you predict credit risk and prevent delinquency, download our Ebook here.