Brighterion, a leading artificial intelligence and machine learning platform that provides real-time mission critical intelligence, in collaboration with fintech media group LendIt, today released its second annual report, “AI Perspectives: Credit Risk and Lending.” The report provides data-driven insights about financial institutions and lenders’ adoption of AI in credit risk management.
“Today’s report validates what we’re hearing from our customers with the continued and planned adoption of AI and its use cases, but there is still room to refine these approaches,” said Amyn Dhala, Chief Product Officer and VP of Brighterion, a Mastercard company. “Advanced credit risk management tools help to remove some of the guesswork and enable financial institutions to reduce losses while having more time to improve customer experience.”
Brighterion and LendIt collaborated on a survey sent to 1,000+ LendIt subscribers, including national and regional U.S. banks, credit unions, community institutions, and financial technology providers:
- Nearly 90% of respondents reported they will make further investments in AI over the next 2-5 years. More than half of respondents (54%) noted ease of deployment as critical to the success of current and future AI infrastructure.
- Nearly 60% of Lenders reported using AI for loan origination and 42% use it for credit risk monitoring for existing customers. 70% said they would like to use it for origination in the future, and 76% would like to use AI for credit risk monitoring for existing portfolios.
- 79% of respondents leveraged rules-based systems for credit risk management, with half reporting also using AI. A combined approach can layer in human expertise that better understands the context of the problem while leveraging the speed and processing of AI to reveal deeper insights.
- Lenders need to diversify their data sets to increase the breadth and depth of insights on their borrowers. Credit bureau scores topped the list of data sources used to measure creditworthiness (80%), followed by internal billing and payment history data (64%).
- Model governance/regulatory requirements (46%) and hard to interpret “black-box” models (38%) were top concerns for adopting AI for credit risk. As AI adoption grows, model explainability will become increasingly important and will result in new laws and regulations.
To download the full report and uncover more insights on how AI can enhance bankers’ decision systems, visit this link.
About Brighterion, Inc.
Brighterion, a Mastercard company, was founded in 2000 and acquired by Mastercard in 2017. We deliver a leading artificial intelligence and machine learning platform that provides real-time mission critical intelligence from any data source, regardless of type, complexity or volume. Our AI solution secures billions of transactions monthly and is used and trusted by many of the world’s leading organizations and governments in payments, compliance, financial markets, security and defense, healthcare, Internet of Things, marketing and more. Currently we serve 74 out of 100 of the largest U.S. banks and more than 2,000 customers worldwide, analyzing nearly 100 billion transactions annually. For more information, please visit us on the web, blog, Twitter, Facebook or LinkedIn.
LendIt Fintech is the world’s largest fintech media company. Every day we celebrate, educate and connect the people who power the fintech industry. Our products include large-scale industry events, executive roundtables, daily news emails, podcasts, whitepapers and webinars. Like much of the economy today, financial services is experiencing a rapid upheaval. We are seeing a multi-decade transformation where fintech will take center stage as everything becomes digital. LendIt Fintech is there for you, reporting the news on a daily basis, enabling real-time discussion and insights with LendIt Fintech Digital and empowering our community with connections and in-depth learning at our physical events.
Walker Sands for Brighterion