Can Machine Learning Improve Consumer Lending? We Think So. - The Protiviti View

The ready availability of large volumes of internal, external and social media data, along with advances in analytics and the advent of machine learning (ML), appear to have created the perfect opportunity for improving consumer lending decisions. Can it make the processes that financial institutions use to ensure they are meeting both the stringent regulatory requirements and the ever-changing consumer demands more efficient, while reducing credit risk? These questions were among the topics discussed during a recent webinar conducted by Protiviti's advanced analytics practice leaders and attended by more than 200 people. During the webinar session, we asked the attendees to weigh in on whether machine learning is currently used in their consumer lending business. Just 10.9 percent said yes, while half indicated they did not know whether their organization is using machine learning.