Banks Aim AI At Credit Risk, Payments Services PYMNTS.com

Of the seemingly inexhaustible uses of artificial intelligence (AI) in the financial sector, its applications around managing credit risk and optimizing payment services are among the most promising. The proliferation of "smart agents" that handle these tasks is a glimpse of more innovation to come, as AI proves its worth to financial institutions (FIs) in the great reopening. That FIs and enterprises are pouring millions into AI development is not surprising, and where they've been focusing that development shines a light on where AI can do the most good. The April 2020 Unlocking AI Playbook: Credit Risk And Payments edition, done in collaboration with Brighterion, notes that "… banks appear to be applying AI with greater specificity than in the past, suggesting that strong use cases have emerged. Our research shows that 92.9 percent of AI-using FIs are applying it to payment services, and 71.4 percent are doing so in credit underwriting. The latter finding is a marked shift from our 2018 study, in which just 27.3 percent of FIs reported using AI in credit underwriting."