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What’s The Future Of AI In Lending? 9 Experts Share Their Insights

  • 30 September 2019
  • Sam Mire

As a people, we assume that lending is forever going to be part and parcel of our economic system. With the clever adoption of new technologies and all the good that the likes of AI could bring, lending could very well remain a sound, consistent aspect of the global economic machine. But how will new technologies impact the shape of lending in more specific terms?

These industry insiders have a clear view of the state of lending, which gives them an advantage when predicting AI's role in the future of lending. Here's what they said about i:

1. Dr. Marlene Wolfgruber, Director of Product Marketing at ABBYY

“Many manual tasks such as reviewing forms and data input will be undertaken by AI, allowing loan processors to concentrate on more important jobs like ensuring the process is kept on track so the loan will fund in time and the customer satisfaction rate is high.

Process Intelligence will enable financial organizations to streamline applications and other consumer credit offerings. This becomes critical since onboarding new customers for a variety of products typically follows individual business processes and requires specific supporting documentation for verifying employment, assets, income and identity. Any delay or error in these onboarding processes could significantly impede transactions resulting in lost revenue, higher-processing costs or negative consumer experience.

It is only by understanding the entire process end-to-end that organizations can identify problems and correct them – machine learning through PI will do this.”


2. Dan Raviv, CTO and co-founder of Lendbuzz

“Dynamic access to credit – with a click of a button one can get access to credit that best fits his or her limits. Using AI, with every loan, a lender can easily tell what you can afford and how much you’d need to pay back. Traditionally, the client needs to connect their bank account, fill out an application and provide info manually. AI allows us to do an accurate analysis without pulling as much data. Eventually, there will be a centralized source of data and once there is access to big chunks of data, anybody can be compared to another anonymously and we can write algorithms on top of that. Therefore, it will be easier to get access to financing with more accurate, privacy-aware and secure platforms that use AI and machine learning.”


3. Joshua Jones, CEO of StrategyWise

“Expect to see faster response times, more granular product offerings (limited offerings are a result of an analog/manual approach that needs simplicity), better customer service, and globalization of offerings and sources of lending to name a few.”


4. R.J. Talyor, founder and CEO of Pattern89

“AI will be fully integrated into every advertising strategy. Insightful data exists for advertisers to access, and AI will be the technology to help them digest it. Advertisers will come to understand the information that is available to them, and how an AI solution can enhance their own work and maximize ROI. With this integration into the industry, working with artificial intelligence solutions will be a part of everyone’s job.”


5. Jeff Silberman, Counsel in Reed Smith’s Financial Industry Group

“I think in the future AI may be used to analyze pools of data outside of the loan application process, including social media and web presence indicators. For certain asset classes, advances in AI and machine learning have the promise of expediting loan decisioning times. Larger loans that once involved long and intensive reviews, such as mortgage lending, will happen over the course of hours – not weeks or months.

Improvements in AI-based risk analysis also have the promise of greatly reducing default rates, and also creating more inclusive underwriting allowing lenders to reach a broader audience of borrowers.  In the near term, online lenders and the fintech service providers will continue to lead the way in AI and machine learning advancements. However, over time, I’d expect banks, credit unions and other traditional lenders will make significant strides in this area.”


6. Anis Uzzaman, CEO of Pegasus Tech Ventures

“We can envision a future where there are more complex AI simulation models that incorporate a variety of technologies and market data sources for prediction of a company’s near and long-term future. Yet, even then we expect these will augment human decision making as the ability to simulate market environments for prediction will likely never reach guaranteed prediction.

For once a firm reaches an advantage, then other firms will replicate this capability and thus reset the base assumptions. However, we are confident that with AI in general, investors will be able to better simulate various scenarios for target companies and markets they are looking to invest in. AI solutions will continue to be more important for investment firms over time and should help increase overall decision making.”


7. Douglas Merrill, CEO and founder of ZestFinance

“Fair and transparent machine learning models that catalyze a more inclusive and profitable credit economy. Lenders will be using more data to make decisions and will be able to explain in plain terms exactly why their models make approve-deny decisions just as they do now (or even better than they do now). Explainability gives developers insight into the “why.” Why did the model lead to these results? From there, companies can document the reasoning behind their results and stay on top of their models, refitting or retraining them as business needs change. If executed successfully, the future of AI in lending can secure loans for millions of deserving people, putting them into homes and cars they need to improve their economic lives.”


8. Keren Moynihan, co-founder of Boss Insights

“Collaboration with outside tech tools to offer customers a personalized, easy road to capital. Industry players must be very aware of the value they bring to the table, and rely on others to bring the parts that they excel at. Collaboration will lead to more personalized products for customers and better service.”


9. Steve Comer, Director of Financial Services at Hyland

“The future for AI in the lending industry is vast. The starting point has been focused on the application approval process, but the possibilities for AI to improve the credit decision process is on the horizon. Assuming the technology and regulatory pieces keep pace, the potential benefits of AI could be seen through reduced credit loss, higher revenue per loan, reduced write-offs, lower due-diligence costs, lower servicing costs and a better overall work experience for the knowledge workers.”

 

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About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.

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