Faced with a flood of data, Artificial Intelligence (AI) and Machine Learning (ML) through the Application Programming Interface (API) are proving to be the weapon of choice for organizations looking to manage a high number of loan applications and get the most out of them.

Through the use of algorithms and big data, AI elevates credit scoring—the automated methods that a financial institution uses to determine if a loan application has sufficient solvency guarantees—to a new level, giving higher precision, automation, and speed.

This is achieved by linking lenders with entities that generate information, such as the Tax Administration System (SAT) in Mexico, to make the credit decision with more information when the applicant has a credit history with few data.

In this process, Machine Learning examines and discovers connections between data that humans would never notice, allowing businesses to more accurately predict customer preferences and behavior and tailor credit to each profile.

Because models produced using ML take into consideration many more factors than standard statistical models, it is a field of AI that allows machines to learn without being explicitly taught to do so. Experts monitor the learning process to ensure that the model learns appropriately and that there are no biases or overfits.

Furthermore, it enables financial institutions to continuously monitor loans for risks or irregularities, resulting in more efficient operations, increasing value for lenders and borrowers.

The financial sector is at the forefront, and technology has become its constant ally in managing a big volume of data and extracting the most value from it, assisting credit-granting companies in lowering their operating costs and providing superior service.

CRiskCo provides a technological solution through powerful APIs that consult and combine all SAT data to perform an assertive credit risk assessment in real time, bridging the gap between lenders and borrowers.

Because the platform allows us to manage a large volume of data and make the most out of it, CRiskCo’s AI helps to the fact that 45 percent of SMEs in Mexico that do not have access to credit can become enterprises susceptible to funding.