What machine learning can bring to credit risk management - Bobsguide

As credit markets continue to evolve, banks may take advantage of products which utilise machine learning – software which allows banks to anticipate risks more effectively. But should banks revise their credit risk management processes accordingly and employ these new solutions? According to McKinsey, AI and machine learning technologies could add up to $1 trillion in additional value to global banking every year. Financial institutions are using machine learning to make credit decisions more accurately and consistently while reducing risk, fraud, and costs. For example, Citi bank recently transformed its critical internal audit using machine learning--something that has contributed to high-quality credit decisions.