AI Express in action
As financial institutions (FIs) increasingly recognize the benefits of using AI to manage credit risk, they’re also looking for ways to implement AI quickly and efficiently with little risk and without disrupting their current operations. AI Express is another powerful implementation process from Mastercard that’s a great way to experiment with AI technology and quickly see a proof of concept. Takeaways include an opportunity to compare AI Express results against existing AI solutions, an ROI-based business case for proof of concept and a future-proof deployment plan.
In one real-life example, a large global bank challenged Mastercard to create a credit risk model to predict which customers would go delinquent on their credit card payments. Using AI Express, Mastercard developed a model that incorporated a range of data, including historical account details, bureau data, credit card transactions, and payment history. The model was able to identify $50M in preventable credit losses. In addition to identifying massive savings, it was done without impacting the customer experience, which was one of the bank’s key objectives. The model also predicted these delinquencies an average of 70 days before the delinquency occurred, which gave the bank time to take action and collaborate with their customers.
As we move towards recovery after the pandemic, we’re seeing lenders focus on portfolio management, investing in technology for collections and upgrading omnichannel communications to improve messaging to customers. Proactive lenders don’t want to be behind the eight ball reacting to what’s already happened; instead, they want to know what’s happening in real-time or to be able to predict what’s going to happen. Tools such as ID Verification by Mastercard and AI Express help empower them to do just that.
Learn more about ID Verification by Mastercard and watch Sarah’s demonstration here. You can also watch the full replay of Amyn and Leslie’s LendIt presentation, Artificial intelligence and managing the credit risk lifecycle, for more insights into managing credit risk and improving customer relationships with AI.