Fintech players rely on AI to build credit scores for disbursal of loans

The burgeoning online lending segment in India is also giving rise to a new kind of challenge on sourcing credit score data. To solve this problem, several fintech companies are using Artificial Intelligence (AI) and Machine Learning (ML) to create alternate lending data score for more than 80 per cent of the Indian population who have no credit scores. From the place where people live to the restaurants they visit to their digital footprints on social media, ML captures it all. Mohan Yadav, a 25-year-old software professional in Mumbai, was denied a ₹25,000 personal loan by his bank since he had no credit history. After a quick search online, he applied for a loan from Cashe, a Mumbai-based fintech company that offers personal loans to salaried professionals who have just entered the workforce.