9 ways to benefit from AI in SME lending

Published July 13, 2023

Commercial lending is fertile ground for smart AI applications. We list some key ways that your business can benefit from AI.

Decisioning and Analytics

The capability to analyse and make decisions regarding new and existing borrowers is a key success factor. AI can help improve the speed and quality of those decisions.

Improved Credit Decisioning: AI algorithms can analyze vast amounts of data to assess creditworthiness more accurately and efficiently. The benefits include faster client onboarding and improved portfolio management.

Predictive Analytics for Collections: Analyze historical data to predict the likelihood of delinquency or default. Having a way to stay on top of potentially troublesome cases gives a much better way to avoid surprises.

Risk Assessment: AI-powered risk assessment models can analyze diverse data sources, such as financial statements, market trends, and industry benchmarks.

Efficient Portfolio Management: Tools that can monitor and analyze loan portfolios in real time.

Process Automation

Having more streamlined processes throughout the lending cycle means you can provide an improved customer experience and reduce overhead costs.

Streamlined Loan Application Process: AI-enabled chatbots or virtual assistants can assist borrowers in filling out loan applications.

Automated Financial Reporting: Automate the extraction and analysis of financial data, generating accurate and timely reports.

Automated Document Verification: AI-powered optical character recognition (OCR) systems can automatically extract relevant information from documents.

Optimisation and customisation

Gain an edge over your competitors by setting the right pricing strategy and tailoring your offering to individual customers (based on real-time data). This is most likely going to be an industry standard in a few years, so better get started straight away.

Optimal Pricing Strategies: AI algorithms can analyze market trends, borrower behavior, and risk profiles to determine optimal interest rates and pricing strategies.

Personalized Offerings: Analysis of customer data and preferences to tailor loan products and terms, resulting in higher customer satisfaction and conversion rates.