You hear a lot about possible uses for artificial intelligence in financial services, but we’re still in the nascent stages of adoption. One area we’ve started to see AI deployed is in lending, using it to parse massive amounts of data to make lending decisions quickly or determine risk.
But many of the firms doing this tend to be fintechs; there aren’t many traditional lenders doing so — until now.
Freddie Mac announced last week it would test AI technology from a company called ZestFinance. The pilot program will use AI in making lending decisions; AI can quickly mine data beyond the traditional credit score, such as cash flow, bill repayment, and other aspects of financial behavior.
This could be a big step for the broader acceptance of AI in lending.