How AI Supports Inclusive Lending on the Way to Fairer Credits
Inclusive lending, as a part of inclusive finance, is becoming more than a trend, but another ESG initiative and a quality way to differentiate from competitors. Studies demonstrate that a lot of people may face discrimination when applying for loans, such as higher interest or rejection rates.
Recently Dmitry Dolgorukov, HES FinTech Co-Founder, touched upon this buzzing topic in his interview with Authority Magazine:
Financial inclusion is among the top three most discussed topics at fintech conferences, webinars, and meetups. This is what all financial software vendors need to keep in mind when offering their solutions, something that can help build a competitive advantage and meet social-oriented tendencies in digital offerings.
In the article, Dmitry gives strong arguments about the importance of inclusive lending for lenders, borrowers, and the entire financial industry in general. Also, he researches the potential of AI technology for promoting inclusivity at an acceptable financial risk level.
According to recent research, around 26 million people in the US are credit invisible due to the lack of credit history or limited access to financial services. Artificial intelligence has the potential to change it. AI tech seems extremely useful for reducing operating costs and automating business processes, as well as for minimizing human factors and improving the lending decision quality.Dmitry Dolgorukov, Co-founder and CRO of HES FinTech
In the full article you will find:
- Challenges of AI usage in financial services
- Key benefits AI provides banks and fintechs with (such as expanded product range, higher level of automation, substantial changes in the application process, and more)
- Valuable statistics on the lending industry to think it over
Read the full article on the BAI website:
Bank Administration Insitute is a US-based non-profit organization helping financial industry leaders make smart business decisions for over 90 years. Today it provides unbiased advice, relevant information, and education to more than 30 thousand industry leaders worldwide.