For the lending sector, protecting the stability of the organization and to reduce credit exposure are the biggest concerns during the pandemic. This has emphasized lenders on the critical importance of Artificial Intelligence and Machine Learning solutions that enable speed, flexibility, insight and innovation.  AI-powered capabilities and services can help firms automate their IT infrastructures to be more resilient to future disruptions and to help reduce costs.

Areas where Artificial Intelligence can help Lenders:

Forecast cash-flow: Cash flow is likely to continue to be a serious concern for smaller businesses as revenue streams dry up. Multiple AI and Machine Learning algorithms can process datasets including inflows/outflows, sales orders/customers invoices, purchase orders/vendor invoices and expense reimbursements for comprehensive as well as accurate cash flow forecasts.

Predict future losses: COVID-19 has brought about a stressed financial environment that affected credit quality and credit losses. An AI dashboard uses various criteria points that can help in predicting and preparing for these losses by highlighting patterns and trends—right down to the loan type, region, branch location, etc.

Sales prioritization: With AI, the algorithm can compile historical information about a client, along with social media postings and the salesperson’s customer interaction history (e.g., emails sent, voicemails left, text messages sent, etc.) and rank the opportunities or leads in the pipeline according to their chances of closing successfully.

Agile risk management: AI can complement the internal controls and early warning systems already in place around loan approvals, disbursement, and monitoring. A strong AI dashboard can also provide regular insights on the overall health and status of your loan portfolio in real-time, allowing you to make more accurate risk assessments and pivot as necessary.

Liquidity management: Pandemic has created liquidity pressure when managing loan portfolios. AI measures and analyzes behavioral patterns within a lender’s loan portfolio to improve efficiency. It can help management monitor where and how funds are moving and what level of liquidity is needed to stay within acceptable risk boundaries.

Enhanced decision-making: In a post-COVID-19 world, lenders will likely exercise greater caution when it comes to credit risk. AI can help flag potential problems and potential biases at the loan authorization stage. It can provide managers with greater visibility and access to data, to make decisions that align with the organization’s risk appetite and policies.

Back-office tasks: AI-powered cognitive assistants can perform a company’s back-office tasks effectively

Insight Consultants has a broad range of AI-powered capabilities and services that are designed to help chief information officers automate their IT infrastructures to be more resilient to future disruptions and to help reduce costs. So, if you are you looking for ways to harness the power of machine learning and AI for your business, or would just like to know more, fill the form below