Are you interested to start using artificial intelligence (AI) in your credit underwriting business? Here are two lessons that I have learnt, which might help you convince your organization to use AI.
It is no secret that AI improves credit underwriting. How much it will affect your business is impossible to answer before trying it – since it depends highly on the AI technology and what data is used.
There exist several options to understand how much AI will improve your specific business. One classic method is to run a proof-of-concept. The proof-of-concept path involves building an AI model, comparing the AI model performance to your current model, and analyzing the incremental business impact that the AI model delivers. If you are experienced within AI you can try it out yourself, you can hire people that are experts within this field or sign-up for our pilot study. Either way, you will ultimately discover that AI underwriting will add significant value to your business.
There are several challenges to accomplish before deploying an AI model into production. Including IT-Integrations, regulatory and compliance issues. In our experience, we have found suitable, low-friction IT solutions that are agnostic to whether a lender prefers to run its solution on-premises or in the cloud.
Part of the deployment challenge is the model transparency, a credit underwriting model has to be understood so it can pass your existing risk management committee and compliance requirement. This requires you to dig deep into the complex math behind the AI model – my recommendation is to find a partner who already has addressed these types of challenges before since it is really time-consuming, math-heavy and complex process. At Evispot we have developed a solution, called Traits, customized to give creditors the transparency and explainability required to take an AI model into production.
If you’re ready to capture the benefits AI can give your credit risk models, let’s have a chat!
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