Navigating Financial Uncertainty: Lessons from the SVB Collapse on Effective Risk Management
The recent collapse of Silicon Valley Bank (SVB) has brought the importance of risk management to the forefront of the financial industry. As one of the largest lenders in the start-up ecosystem, SVB’s collapse highlights the importance of dynamic and robust risk management strategies in maintaining financial stability and, thus, the avoidance of similar disasters […]
Holiday Inflation_Food, Gifts, and Vacations Costing 13% More in 2022
With the winter holiday season coming quickly, Americans and Canadians alike are beginning to lose sleep as they think about how they might pay for the most expensive time of the year. The holiday season comes with many expenses; gifts, family dinners, and vacations. But, many of these industries are leading inflationary trends amongst most […]
Lending Trends of the Past, Not the Future
The start of this decade has been one of the most financially erratic times in recent history; what some would call shocking. From stock prices to interest rates and extreme volatility, no one could have predicted the situation we find ourselves in today. These extraordinary market conditions have predictably caused behavioral changes in common consumers, […]
Breaking the Silos: Connecting Underwriting and Marketing
Marketing professionals in any industry are inundated with segmentation variables and reports that enable them to develop optimized campaigns to drive results. Segmentation is critical for marketers to identify the leads that have the highest propensity to buy and craft offers that are targeted at each segment. However, conventional metrics available in most segmentation providers […]
How to Leverage Economic Volatility
The COVID-19 pandemic might be coming to an end, but the economic volatility and ongoing instability it created is just beginning. For the first time in decades, the American and Canadian economies have seen soaring inflation and record-setting central interest rate hikes. Since March 2022, the US Federal Reserve interest rate has climbed 225 basis […]
Top Tips for Data Security
The success of companies in the 21st-century depends on the ability to mitigate data breaches, proactively tend to privacy risks, and manage both compliance and cybersecurity fundamentals that secure customer data. Companies that offer financial services handle large amounts of highly sensitive financial and personal information, making them more vulnerable to cyberattacks. The push for […]
How Auto Lenders Can Make Effective Underwriting Decisions
John M. Giamalvo, the head of Subprime Automotive at Trust Science®, compared the pandemic with a “positive perfect storm” for Buy-Here-Pay-Here (BHPH) dealers in the February issue of the BHPH Dealer. The influx of over 10 million immigrants in the last ten years has widened the horizons of auto-lenders. Owing to the pandemic, the usage […]
How Can AI Access and Harness Your Data
Technologies like artificial intelligence (AI) and machine learning (ML) have replaced traditional computing, transforming how several industries operate and conduct business. AI uses computers and algorithms to simulate human intelligence, while ML allows machines to learn from data with experience and time gradually. The deployment of AI in credit scoring, allocating credit, and risk has reshaped […]
Can Machine Learning Integration Improve Efficiency?
According to the Institute of International Finance, the most common use of machine learning (ML) technologies is credit scoring. An increasing number of financial institutions are using ML technologies to make decisions on granting new credit, monitoring outstanding loans, early-warning systems, and refinancing non-performing exposures. A recent survey shows that 37% of the international institutions used ML models […]
The Power of Artificial Intelligence and Machine Learning in Credit Lending
Artificial intelligence (AI) is an umbrella term defining how different machines and algorithms simulate human intelligence and functions. Machine learning (ML), on the other hand, is a subset of artificial intelligence in which machines are programmed to process large amounts of data (beyond the human limit) and improve gradually with time and experience. Both AI […]
How to Successfully Leverage AI and Avoid Common Pitfalls
The proliferation of artificial intelligence (AI) technologies has offered companies, especially FinTech companies, a considerable possibility to develop and improve services. The use of AI can increase profits, improve the quality of customer services, reduce costs, optimize processes and increase the company’s efficiency. Artificial intelligence can improve several areas, including credit scoring, investment/asset management, underwriting, […]
How Explainable AI Looks to Overcome AI’s Greatest Challenges
With the proliferation of artificial intelligence (AI) technologies in different financial and IT industries, AI’s potential has only increased. As AI tools become more advanced, there is an increased possibility that most of the decision-making computations are done in a “black-box” with no human explainability. Explainability is the key to customer trust, especially in the […]
