Remove Risk Assessment Remove Underserved Remove Underwriting
article thumbnail

Trade Ledger Partners With Wiserfunding For Commercial Risk Assessments

PYMNTS

Inaccurate and slow credit risk assessment for [small- to medium-sized business (SMB)] commercial loan requests is one of the major reasons that over 50 [percent] of loans are currently declined by financial institutions (FIs),” said Roger Vincent, chief innovation officer at Trade Ledger.

article thumbnail

Home Credit China Cuts Risk by 25 Percent on Thin File Loans

FICO

The score was used in addition to data from loan applications, Home Credit’s existing internal scorecards, and other external data sources to cut credit risk on point-of-sale (POS) loans by 25 percent and online loans by 15 percent compared to the old generation of models.

Risk 97
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

From open banking to open finance and beyond: The future of financial data-sharing

The Payments Association

Open data, in turn, enriches these offerings, enabling innovative credit scoring and risk assessment beyond traditional banking channels. Open data extends beyond regulated financial data-sharing to non-banking datasets, such as telecom, utility, e-commerce, and social data, creating new layers of insight but also new risks.

Finance 88
article thumbnail

Future of Loan Management Systems: Predictions for the Next Decade, 2025-2035

M2P Fintech

This includes employing machine learning algorithms to automate parts of the loan application and underwriting process, as well as using digital platforms to facilitate communication between borrowers, lenders, and other relevant parties. AI, ML, and blockchain enhance risk assessment and security.

article thumbnail

SME finance gap: Why UK SMEs deserve better financial access

The Payments Association

Common issues include: Standardised risk assessments that overlook innovative or early-stage firms. However, smaller firms often struggle to qualify due to tight underwriting standards. Traditional barriers Traditional financial institutions still play an important role, but many SMEs struggle to meet their criteria.

Finance 88
article thumbnail

Why Digital Lenders Are Tightening Their Lending Criteria

PYMNTS

Now, the tech-driven underwriting models that promised to assess risk more accurately, and extend credit more efficiently, may be confirmation that traditional risk and lending business models may have more going for them than their new, FinTech challengers once thought. The Coming Risk Assessment Reset.

article thumbnail

AI Becomes the Banker: 21 Case Studies Transforming Digital Banking CX

Finextra

Traditional areas like fraud prevention (65%), credit underwriting (62%) and regulatory compliance (58%) are still heavily prioritized, reflecting that these were some of the first uses of AI in banking and continue to be critical for reducing losses.

AI 64