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Lenders bet on AI for credit scoring

August 1, 2018

Via: Finextra

Banks have to struggle with a lot of risks – from issuing credit to operational challenges, technological troubles to good old fashion fraud. In addition to the risks of yesteryear, modern banks face falling long-term rates, growing fintech competition and low profitability. This leads the savvy modern banks to focus more of their attention to mitigating risks.

Chief among these challenges, low performing loan portfolios are a constant thorn in the side of lenders. For example, European non-performing loans stand above €1 trillion with more than one third of banks having NPL ratios above 10% (ECB, 2017).

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