The organization of the AI model serves to streamline the evaluation process and speed up the loan application process. Reducing processing times, improving risk assessment processes and major technological advances in financial services are all measures announced on May 25, 2024.
The AI model should take over the basic areas required in the credit assessment process, limiting potential human error and speeding up the associated decision making. The technology would scan large amounts of data in a short period of time, enabling QuickLoan Financial to process loan applications 40% faster than the previous method. In this way, the AI system was able to increase the detection of high-risk applications by 25%, improving the company's ability to process cases with a high probability of default.
AI credit approval is usually designed to help institutions solve numerous problems. Traditionally, it is very slow as the checks are done manually in most cases, which is tedious and creates room for discrepancies. Therefore, QuickLoan Financial can respond to applicants and work more efficiently.
"I am excited about the positive impact our new AI model will have on the loan approval process," said Sarah Thompson, from LoanMarket Geelong. "This technology will do double duty: Not only will it reduce processing time, but it will also increase our counseling capabilities to ensure service remains consistent and reliable for our customers."
It uses machine learning to assess the customer's ability to repay, so that it predicts the likelihood of the loan being repaid much more accurately on a historical basis. It takes into account credit score, income level, employment history and spending habits. All of these predictive capabilities help QuickLoan Financial make better lending decisions and reduce risk while expanding access to credit for eligible borrowers.
Furthermore, the implementation of AI fits in with an industry that is moving towards digital transformation. Financial institutions are now using technology to improve their services and increase operational efficiency globally. AI has become prevalent in improving decision-making processes and providing personalized financial services.
Future
However, transparency and fairness in lending are still widespread criticisms of the introduction of AI in this area. Critics argue that reliance on automated systems, if not well regulated by the algorithm, can easily lead to system bias. QuickLoan Financial has adopted a model of AI that undergoes robust checks and updates to ensure fairness and accuracy in valuations.
Thompson said: "Transparency and fairness are our top priorities. There are tough checks, reviews of our AI model to find and adhere to these values, audits and continuous improvement as part of our commitment to fair and predictable services."
Increased efficiency and better risk management are other ways QuickLoan Financial's AI model has significantly improved compliance. Automating processes ensures that every loan application is consistently reviewed according to mandated industry standards.
Other financial institutions may be encouraged to adopt a similar form of technological improvement to that initiated by QuickLoan Financial. Innovation in the industry is increasing, and AI and other forms of technology-enabled change will become commonplace, creating new forms of innovation in financial services. So this is an important step within the financial sector. QuickLoan Financial is working closely with other institutions to achieve a true revolution in improved service delivery and process efficiency through faster turnaround times and improved risk assessment through AI. With similar advances being recognized by other institutions, the industry is likely to see widespread adoption of AI, ensuring that consumers receive even more efficient and reliable financial services.
