The POWER of AI and Credit Decisioning

Written by Di Princell

July 27, 2021

The universe is always sending us gifts, all we have to do is open them. ~ Di Princell

Artificial Intelligence (AI) may well be the supportive superhero for credit decisioning in the current decade: slaying machine-learning systems, disrupting financial services, fighting against biased algorithms, demanding more accurate predictions, and destroying the way credit risk is measured. Combining AI with financial data creates knowledge out of confusion and sees into the future: changing status quo, paving the way for innovation in the financial arena, and tearing down closed doors to credit.

The RIBBIT.ai team combines behavioral analytics with bank and payment data to generate smarter decisioning for consumer finance providers – lending, credit cards, buy now pay later. RIBBIT.ai applies AI to bank transaction data to examine the behavior that reflects the way consumers manage their bank accounts. RIBBIT.ai’s data scientists curate transactional bank data to more accurately understand the ability to afford a financial product or service.

Historically, the financial world has excluded a large segment of the population deemed not worthy of credit, built on biased algorithms and analytics from outdated machines. The revolution has arrived; the myopic, outdated, credit structure that the bureaus have built is crumbling. Adding AI to the credit risk formula creates diverse loan opportunities for Fintechs and for the underserved so that accessibility and fairness can thrive. Thousands, not the typical hundreds of data points, relating to a customer’s financial behavior will be analyzed by RIBBIT.ai’s data scientists; no longer will credit worthiness be underestimated, opening doors to a myriad of successful loans.

According to Research Gate, “about one-third of companies expect 51% to 75% of their workloads to be supported by AI technologies in five years’ time.” RIBBIT.ai uses AI as a deeper learning vehicle to create a more informed and customized product by constantly manipulating, changing, and improving data. Understanding the shifting nature of the world, AI doesn’t accept static measurements, “one for all, all for one.” Credit scores encompass static consumer information that often doesn’t reflect present purchasing patterns, a definite gap in assessing risk.

Employing artificial intelligence, RIBBIT.ai’s team analyzes mega amounts of data that prompts software to create incessant patterns and features resulting in deep insights, connections, relationships, and intelligent meaning to the data. Predicting the relevancy of information is paramount in RIBBIT.ai’s new Bank Insights analysis, what really matters, what doesn’t and how do we use it to make the outcome smarter and more dependable for lenders and consumers. Evaluating payment behavior over a more appropriate and insightful period is at the core of RIBBIT.ai’s Bank Insights, painting a relevant picture of consumer’s fiscal propensities in real-time.

Shawn Princell, CEO of RIBBIT.ai, comments “It’s exciting to be a long-awaited disruptor in the lending space relying heavily on the powers of AI because it allows us to remain adaptable to the relentless changes and improvements in the Fintech world. Our team of data scientists is creating opportunities for everyday people who need and deserve loans based on a much broader picture of their abilities to pay them back.”

Stay tuned . . .

Related Articles

Wisdom for the 2022 Workplace

Wisdom for the 2022 Workplace

It’s great to be great, but it’s greater to be human ~ Will Rogers

One of my father and husband’s favorite TV characters was Andy Rooney, who appeared at the end of every 60 Minutes episode with a short critique on the condition of the world. Andy was the dessert at the end of the informative and serious news program, culminating with a rise of his bushy eyebrows, a twinkle in his eyes, and his witty, often acerbic insights about the way things were. And was often said, he could say so much with just a few words.

The Gift of Giving

The Gift of Giving

Tomorrow doesn’t matter, for I have lived today ~ Horace

A young, grey cat with the greenest eyes wandered into our yard last week and made serious eye contact appearing to ask for my assistance. Not particularly a cat lover, I hoped she would go away, but after hours of continual pacing and meowing, I poured some milk into a bowl. Needless to say, Greyling knew she had found a friend and yes, I did name her.

Same Day ACH Payments Just Got a Booster

Same Day ACH Payments Just Got a Booster

Success is a ladder than cannot be climbed with your hands in your pockets ~ American proverb

In a country often filled with broken promises and lip service, it’s refreshing to look at the track record of the Electronic Payments Association (NACHA), who introduced Same Day ACH for credits 5 years ago. NACHA, the rule maker and governing body, for most financial transactions in the U.S., promised yearly enhancements to Same Day ACH including adding debits, expanding the hours to submit payments, and increasing the dollar limit for each payment. The payment’s world salutes NACHA for their honesty, transparency, commitment, and follow-thru.