Credit risk

Provenir adds an AI-powered credit risk solution

On Tuesday, b2b SaaS provider Provenir introduced Provenir AI, a no-code AI-powered credit risk underwriting solution. The release came just days after a Provenir published research that showed most fintechs or financial services are not confident with their current underwriting models.

“Provenir AI powers faster innovation by supporting a lending strategy that delivers the highest returns in customer satisfaction and revenue,” said Carol Hamilton, SVP, Global Solutions, “through deeper insights, continuous optimization and smarter, more accurate risk decision-making.”

Last week, the company released a joint survey with Pulse, finding that 18% of fintechs and financial services were confident in their underwriting models only three-quarters of the time. The company saw the study as an industry litmus test for current challenges, but the b2b marketing team said it supports the soon-to-be-announced AI product.

Read the study and the results here.

Fintech Credit Study: Barriers Around the World

With input from 400 financial services around the world, the study also flagged the most important pain points in credit decision making. They found that most decision makers struggle with their organization’s credit risk strategy because the data is not easily accessible (74%) and access to other data sources is limited (60 %). 60% also indicated that they did not have a centralized view of data throughout the customer lifecycle.

Even for those who used AI products, only 21% said they started seeing returns within 120 days. 59% of respondents said they didn’t start seeing ROI from their AI implementations for more than 3-4 months.

“Consumer credit markets have changed dramatically over the past two years, but many financial services organizations are still using legacy approaches to credit risk decision-making,” said CEO and Founder Larry Smith. “The net result is that organizations today have a substantial level of uncertainty about the accuracy of their risk models, resulting in less inclusive credit, fewer approvals, and reduced opportunities for growth. of the business.”

IA credit subscription

Resolve pain points

Provenir’s new AI product attempts to address these issues, aiming to reduce the cost, complexity, resource requirements and time to market of AI with tailored and trained models for decision making. risk decision.

Company representatives said the new solution offers:

  • no upfront development costs.
  • 60-90 day implementations for best ROI.
  • Full AI explainability provides transparency into “why” and “how” decisions are made, and more

Additionally, Provenir AI connects to Provenir Marketplace to mitigate model bias with data diversity. SoFi is one of many companies using Provenir’s data-driven AI for competitive advantage.

“AI and machine learning are part of the modern toolset financial services organizations need to build and refine predictive models to deliver high levels of responsiveness and the best customer experience,” said Adam Colclasure, SoFi Sr., director of risk infrastructure. .

The goal is to implement a solution so that fintechs who choose the platform can accelerate the launch of their products, such as BNPL, loans to small and medium enterprises, car financing, etc.

“AI finds relationships in your data that traditional decision-making cannot, enabling financial institutions to optimize their portfolio, support greater personalization in product offerings for greater competitive advantage, and improve fraud prevention and financial inclusion.” said SVP Hamilton.