What AI Can Be — And Won’t Be — For Your Financial Institution
The days when fintechs were merely background noise in the lending space are gone. Platforms like LendingTree, Credit Karma, NerdWallet, and Bankrate have redefined the borrower experience, setting a standard that all financial institutions must now strive to meet. Agility and speed are non-negotiable, and the race to stay competitive is fierce.
Where does AI fit in? To answer that, it’s crucial to separate hype from reality. AI isn’t new in financial services — lenders have been using statistical models for decades to evaluate credit risk. What is new is the surge of AI tools grabbing headlines and sparking interest at even the most conservative of institutions.
However, those Generative AI (GenAI) tools aren’t built for the complex regulatory requirements your financial institution navigates daily. And most large language models (LLMs) can’t tell you why they gave you the answers they did.
So how do you use AI to your lending advantage? By blending proven algorithms with new capabilities so you have a data trail to justify your decisions, better and faster insights, and unlimited possibilities.
Human Judgement Isn't Going Anywhere
AI isn’t here to replace humans — it’s here to make them more efficient. Imagine AI that can automatically process documents like bank statements and pay stubs, or adjust loan applications in real-time based on applicant responses, or raise instant red flags for fraud risks. Picture AI that can make credit and risk recommendations, or optimizations to your spend or funnel. All of those things are happening right now.
This doesn’t mean you have to eliminate those valuable in-branch, face-to-face interactions, But you do need to give customers the digital options they crave, and your employees need cutting-edge tools to keep up with ever-rising expectations.
What About Risk?
AI risk is real and many of your concerns are legitimate. There are lots of ways to misuse AI, which is why you need a partner that’s laser-focused on using it responsibly. At Amount, transparency is key. We never use our AI in a way you don’t know about, and you’ll learn on day one exactly how our AI works, what it can see, and what it can’t.
Many financial institution leaders are surprised to learn that our AI doesn’t require personally identifying information (PII) to create actionable insights. Because the data is anonymized, you’re not injecting new risk into your organization. While fully protecting PII, the Amount platform can slice and dice your data in practically infinite ways. Want to compare the trends of customers who are students to those who are farmers? Want to analyze every step of your application process? Our AI makes it all possible.
What's Next?
Today's most popular AI tools are built to solve board problems. Most open source LLMs are trained on a vast array of data across a multitude of subjects. Off the shelf credit models are meant to predict credit risk in general use cases. These tools are undoubtedly powerful and important.
But equally important, is the ability to leverage AI for your unique circumstances. What attributes are predictive of credit risk for your customers? Which question on which page of your application is driving customer drop-off? Which fraud vector is spiking in your data, today?
Here at Amount, we’re helping financial institutions experience the full value of AI with capabilities that are specifically designed for them. We’re working towards a day where AI is tailored for extremely targeted use cases. That’s where the true intelligence lies.
Join us at Money 20/20 USA 2024 as we unveil our new AI product that provides bespoke recommendations, optimizes decisions, and empowers employees. Visit us at Booth #3105 — even better, schedule time to chat 1:1 — and see firsthand how we’re shaping the future of lending.