AI Driven Credit Scoring System for a leading Financial Services Institution

Summary

A leading financial institution was facing challenges with loan defaults due to its reliance on a traditional credit scoring system. The existing method often excluded individuals with little or no credit history, even if they posed a low risk of default. Additionally, the system lacked transparency, making it difficult to meet compliance standards. Manual processing further complicated risk assessment and slowed down loan approvals.

To address these challenges, a team of consultants and developers from TenJumps designed an AI-powered credit scoring system. This system integrated traditional scoring methods with additional financial and behavioral data sources, overcoming key limitations of the previous approach. By leveraging AI, the institution was able to recalibrate risk assessment, improve compliance, and enhance decision-making.

The implementation of an automated decision engine enabled real-time credit scoring, empowering the sales team and expanding financial inclusion. As a result, loan approvals increased by 30%, while default rates dropped by nearly 25%. The AI system’s ability to identify risks with greater accuracy, along with improved transparency and visibility, significantly streamlined the loan processing workflow.