How AI Can Help Financial Institutions Rescue At-Risk Consumers

They say nature abhors a vacuum, and apparently so do predatory and payday lenders. As people hit by COVID-19 loss of jobs or businesses have struggled to make ends meet and experienced credit rejections or delays in government support, those lenders have stepped in to fill the gap. For many consumers, what looks like a quick fix for their finances ends up a debt trap that's incredibly tough to escape. Predatory lenders provide unsecured bridging loans, at high interest rates, which are due for repayment only weeks later. During COVID-19, these lenders have been aggressively pitching their products to the millions of consumers in need of cash.