AI-based Credit Lending & Strategic Partnerships

AI-based credit lending was once a far-fetched concept. Today, it's a disruptive reality transforming LendTech globally.

By partnering with AI experts, even small financial institutions can level up their lending process. Below are the early adopters of this change.

Scienaptic AI has partnered with DigiFi to revolutionise the credit lending industry. Their aim is to make credit decisions quicker and more accurate. They will integrate an AI-based credit decisioning platform into DigiFi's loan origination system. The platform covers the loan lifecycle, from origination to collection. It also includes fraud detection and credit capacity optimization. It will use AI and machine learning to improve these processes.

Talus Pay made two significant acquisitions to strengthen its position in the market. It also extended its footprint. The acquisitions include Jobox.ai. It is a software firm that provides payment solutions for home service entities. They also include Clarus Merchant Services, a customer-focused payment processing company. These moves are set to bring profound synergies to Talus Pay. They will increase the company’s reach and enrich its offerings. Talus Pay has enhanced capabilities. It is set to deliver improved fintech solutions for small to medium-sized businesses.

FusionIQ and Kinecta Federal Credit Union are joining forces. The partnership aims to provide credit union members with broader access to wealth management solutions. Kinecta plans to draw from FusionIQ's scalable platform to enhance their services and offerings. This strategic partnership could revolutionize member experiences. It provides them with more sophisticated financial tools and resources.

Here are some more:

Novo and Taktile collaborated. Novo is a small business banking platform. They partnered with Taktile. Taktile used its automated decision engine to develop Novo's working capital product. This partnership enabled Novo to expedite its application process significantly​​.

Novo and Experian: In addition to Taktile, Novo also integrated Experian's data to streamline its decision flows. This enhanced its application and credit decision processes.

SoFi and Pagaya: SoFi, a digital personal finance company, collaborated with Pagaya to use its machine-learning models. These models are designed to minimize risk for lenders and make informed credit decisions. They represent a significant step in leveraging AI for financial services.

JPMorgan Chase and OnDeck Capital started a partnership. JPMorgan Chase began offering online loans to its small-business customers through this partnership. They aim to speed up lending decisions and process.

Barclays and its digital expansion: Barclays extended its digital lending services to SME clients, allowing them to apply digitally for loans up to GBP25k and receive funds within a day, highlighting its move towards digitalization in lending​​.

Our Opinion:

Alternative lenders can significantly benefit from the efficiency, accuracy, and cost savings provided by AI models. However, they must simultaneously work to ensure data security and privacy and align their AI integration strategies with financial regulations to avoid potential pitfalls. While AI will undoubtedly play an increasing role in alternative finance, like all tools, it must be used judiciously to minimize potential drawbacks.

Headlines You Don’t Want to Miss

Morgan Stanley's top picks in the Artificial Intelligence (AI) sector Morgan Stanley analysts believe that AI is set to generate significant economic value, cutting across sectors and geographies. There has been a surge in AI-related listings and acquisitions in the past three years, pointing to a boom in the sector. The analysts made their picks based on a scoring system considering factors such as a company's technology, AI strategy, scalability, and regulatory risk. Their top picks include Alphabet, IBM, Autohome and more, but the focus was mainly on Alphabet, owning significant AI assets and potent strategies to exploit AI opportunities.

Origence and Tesla Partnership To Drive Affordable Credit Union Financing for Electric Vehicles The partnership integrates the Origence auto finance platform with Tesla's utilized online service for customizing and purchasing vehicles. This integration will allow for thousands of credit union members across the U.S. to gain access to affordable financing from the local credit unions. Tesla and Origence have made it simple and easy for customers to custom order their Tesla online and secure financing at the same time.

Huawei Cloud and Pangu AI's Collaborative Transition Huawei Cloud and Pangu AI have developed a robust AI model to better serve the finance world. Their collaboration combines Pangu AI's expertise in the finance sector and Huawei Cloud's advanced AI technologies. The AI model enhances the traditional financial process by making it cost-effective, efficient and accurate. AI's role in finance is doubled through its capacity of offering personalized services and increasing enterprise revenues.

Microsoft’s New Thinking Cap' has AI-Embedded Windows Keyboard Feature Microsoft's new 'Thinking Cap' tool will serve as an AI task automation assistant and would be embedded directly into the Windows keyboard. 'Thinking Cap' enables users to easily access Microsoft's AI capabilities to perform several tasks, such as calendar scheduling, email writing, or presentation building. By learning the context of what users are working on and their personal habits, the tool can carry out tasks quicker and with minimum input from the user, thus significantly improving productivity. Moreover, 'Thinking Cap' also ensures a higher degree of task completion and accuracy.