AI, or artificial intelligence, has steadily infiltrated a growing number of industries with finance the new verticals to get involved and take advantage of the wide-reaching benefits of the fast-growing digital trend in the past couple of years, perhaps it have been confined to a handful of online loans lenders in the past but as AI edges closer towards mainstream adoption, it has become the norm slowly but necessary. Want to know why more and more online loans lenders are using AI to improve their service, there are 3 reasons:
It can eliminate data bias
In the marketplace of online lending, it is a commonly reported problem of data bias. It can, however, be possible to eliminate data bias with AI during the loan application process by removing the discrimination from the data before a final decision is made and passed on to the borrower. It is particularly prevalent when it comes to loan applications for women with, historically, fewer loans approved for women in the past compared to men with similar credit scores and annual income. This has led to female loan applicants suffering from false interferences, errors, and rejections due to decades worth of data bias.
It can provide a personalised service
If you have ever benefitted personally from AI, you have more than likely received a personalised service that was tailored to your individual needs as a consumer. This is because AI is built and designed to cater to the unique requirements of the consumer, for example with the AmOne loan matching service, in particular tapping into the cutting-edge technology to answer any questions or queries you may have, streamlining the process of choosing a suitable lender, and, perhaps most importantly, improving your chances of success by providing a fully personalised service from start to finish.
It is a common myth within the financial industry that hard money lenders wouldn’t benefit from AI because they deal with fewer applications than major banks and can rely on property for collateral. In the past couple of years, however, AI has been used to streamline hard money lending by pinpointing potential borrowers, identifying minor and major risks, and unearthing upcoming opportunities. This may seem like a complex and time-consuming process but whilst AI may have once required the expertise of coders and data scientists, it can now be enrolled on a subscription basis with AI companies providing the service for a monthly fee.
If you are familiar with AI, you may already know that it is being increasingly used within the financial industry for the process of money lending. This is due to a number of reasons but most commonly because it can eliminate data bias, it can provide a personalised service, and it can streamline hard money lending. It also has the capacity to identify patterns in borrower behaviour to help lenders make more money with the trend only poised to continue accelerating at its current pace until it becomes the norm.