We cannot dispute the powers possessed by artificial intelligence when it comes to data. From tracking down information from devices about a banker’s activities, artificial intelligence can gauge patterns of creditworthiness or lack of it without the need of someone telling it anything. In the blockchain world, fintech startups are looking to use artificial intelligence to disrupt payday lending so as to make loan rates as little as 6% or less.
One of the ways bankers make profits is by giving out of loans. Consequently, it is the same way through which banks make losses if the lender fails to pay. For that accountability reason, artificial intelligence is the newest tech to hit the banking arena as a method to gauge how responsible borrowers are before they can get a loan.
In finance, fraud can come in many forms, from simple misinformation (such as using a relative’s address instead of mine) to serious felonies such as money laundering and identity theft. Artificial intelligence can detect anomalies during the digital application process and identify fraud attempt such as inputting multiple social security numbers.
One fintech company operating in South Africa and fast spreading across the globe “MyBucks” is revolutionizing money lending using the lending operation. The technology allows the company to offer loans even to the unbanked at a 30 to 40% rate for long-term installments.
The idea behind the operation is an artificial intelligence named Jessica which analyzes the customer’s bills history from all devices the customer had used to determine whether they had committed fraud before or failed to pay a loan. The fintech company allows even the unbanked to only use their phones as banks with a loan processing speed of up to 15 minutes.