A tale of two intelligences: How AI and human collaboration can transform lending

In the ever-evolving landscape of lending, the intersection of human judgment and artificial intelligence (AI) has become a focal point. The coexistence and co-development of these two forces is all but an encouraging phenomenon that will steer consumer well-being to its center stage.

Unveiling the known unknowns

In a recent paper titled “Rise of Machines”, authors Mark Jansen, Hieu Nguyen, and Amin Shams delve into the impact of automation on consumer lending. Their randomized experiment, spanning 2 million loan applications across 40 states, yielded intriguing results that challenge traditional underwriting practices.

The findings are clear: machine-underwritten loans outperform their human-underwritten counterparts in several critical aspects:


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