Getting your AI partner right: 11 questions to ask before choosing your AI lending partner

AI in lending is still far from becoming mainstream. Credit scores invented many decades before modern computing, and AI’s emergence often decides the fate of millions of members’ dreams. Over 90% of all lending is still manual, less than 5% of loan decisions are instant, and even prime members pay too much for loans because the rates they pay effectively subsidize the losses from those who default.

AI is gaining ground with credit unions as a tool to enable more credit for members and avoid discrimination and bias. The use of AI in leveraging diverse data points to develop accurate predictive models that seek to identify creditworthy members is potentially a game-changer for the credit unions and can shore up approval rates and improve the member experience.

That said, multiple considerations must be kept in mind while evaluating the right AI partner for you. Using AI in credit decisioning can have numerous implications for you and your members. To understand which platform is right for you, credit unions must carefully assess their providers for fair lending compliance, expertise in risk management, and the accuracy of their models, among other factors.

With that in mind, we have curated a list of questions that every credit unions need to ask their AI partner to evaluate their competency. We have also tried to indicate how Scienaptic endeavors to tick the right boxes by staying true to the requirements of forward-thinking CLOs.

 

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