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Banks Aim AI At Credit Risk, Payments Services

PYMNTS

Of the seemingly inexhaustible uses of artificial intelligence (AI) in the financial sector, its applications around managing credit risk and optimizing payment services are among the most promising. percent are doing so in credit underwriting.

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Global credit risks rise: "Triple threats" to stay

Future CFO

Global credit risks have risen over the past quarter as the triple threat of rate rises, Europe’s gas crisis and China’s moribund property market show no sign of abating, said Fitch Ratings recently.

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Bloomberg To Incorporate Credit Risk Data

PYMNTS

Bloomberg customers will now be able to use the news site's terminal to look at Credit Benchmark 's credit risk data, which comes from risk views of the world's largest financial institutions, according to a press release. They can also assess ongoing credit quality.

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Why AI’s Early Adopters Are Laser-Focused On Credit Risk And Payments

PYMNTS

These circumstances have brought to the fore what has long been a central concern for lenders: assessing and managing credit risk. This vital task is complicated even in normal times due to the multitude of financial risk factors in play at any given time.

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Using AI To Keep Issuers On The Right Side Of Credit Risk

PYMNTS

Credit Risk. Core use cases that are getting a lot of traction, Dhala said, involve credit risk. “It’s Any marginal improvement in terms of modeling or accuracy can result in significant gains because there’s a reduction in credit losses.

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When Fraud Risk Is Credit Risk In Disguise

PYMNTS

Also, what’s a simple and legitimate matter of credit risk ? That’s to say nothing of insiders who help with fraud, or fraud that involves legitimate holders of credit cards simply deciding to ignore their debts. Criminals have learned how to exploit situations in which fraud might — initially, but for a meaningful period of time — look like an issue of credit risk, which can make so much of fraud prevention reactive, not proactive. Here’s a test: What’s fraud?

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NEW REPORT: The Banks’ How-To Guide To Using AI To Manage Credit Risk

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Managing credit risk used to be a reactive process. Waiting until account holders fall behind to take action not only meant that customers’ credit scores would take a hit before their banks were alerted to a problem, but also that banks would lose the revenue from the scheduled payment.

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Flowcast Introduces Tilfull For SMB Credit Risk Modeling

PYMNTS

Artificial intelligence (AI) credit risk model provider Flowcast has unveiled the Tillful platform that provides quick, complimentary and transparent credit scores in addition to access to credit offers, according to a Wednesday (Oct.

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As Pandemic Reshapes Consumer Behavior And Credit Risk: In AI We Trust?

PYMNTS

Banks are reserving tens of billions of dollars against potential credit card and loan defaults. They’re eyeing risk exposure while at the same time trying to help consumers get back on their feet. Recalibrating Risk. Beyond Risk Scoring. The hoarding might be done.

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Today In B2B: ERPs Broaden B2B Payments Capabilities; Bloomberg Broadens Credit Risk Data Pool

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Today in B2B, Bloomberg broadens its credit risk data pool, and two ERP solutions secure B2B payments integrations. Bloomberg To Incorporate Credit Risk Data. They can also assess ongoing credit quality. B2B Payments accounts payable B2B credit News risk managemen

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Lendingkart Lends Credit Risk Tech To FI

PYMNTS

16) said Lendingkart will offer its credit risk assessment technology to banks and other alt-lenders starting in 2017. According to Lendingkart Cofounder Harshvardhan Lunia, the company will look to expand its reach in the SME lending market over the next six months by having other banks use its credit risk analytics software. The company may also charge other lenders for use of its credit assessment tool.

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Will Square’s Stock Drop Shift Attention To Credit Risk?

PYMNTS

Depending on who is mouthing the phrase, one might hear it as “appetite for risk” or “risk appetite.” Risk is what someone takes on, ostensibly for some measure of gain, perhaps outsized gains at that. However, an appetite for risk also extends to other corners of finance, and risk is what lenders take on when they part ways with capital or credit. There is always the risk that these lenders will not get paid back. Risk Gets Riskier.

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Ford To Use Machine Learning To Assess Credit Risk

PYMNTS

ƒFord Motor Credit Co. 25) that it will implement machine learning credit approval models to determine if it will lend a consumer money as it goes after a segment of the market that doesn’t have a solid credit history. At Ford and Ford Credit, our primary goal is to serve our customers,” said Ford Credit Chairman and CEO Joy Falotico in a press release. Although these consumers may have steady jobs, their creditworthiness is heavily based on credit history.

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Startup Scores $62 Million For Trade Credit Risk Solution

PYMNTS

French startup Tinubu Square has secured funding for its solution that provides trade credit risk management, according to news reports on Monday (Oct.2). Tinubu Square’s customers are credit and surety insurers, trade finance banks and export credit agencies, according to reports. Tinubu Square will also look to develop other products for its existing client base in the trade credit insurance market.

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PYMNTS Daily Data Dive: A New Credit Risk Model?

PYMNTS

Could tax liens and judgments soon be excluded from credit risk calculations? Both have an impact on people’s credit scores, making it harder for some people to access credit. But tax-lien and civil-judgment data are used to measure credit risk because they are highly predictive of default, according to VantageScore. VantageScore removed all tax liens and civil judgments from a random sample of credit files from 4 million consumers in an analysis.

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Bitcoin Daily: Teller Notches $1M For DeFi Credit Risk Protocol; Thailand’s Central Bank Experiments With CBDC; Crypto Trader Accused In $4.5M Fraud Case

PYMNTS

Blockchain initiative Teller has notched $1 million in a Framework Ventures-led seed capital to create a decentralized finance (DeFi) credit risk tool, according to an announcement.

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Stimulus measures fail to stop credit risk of five ASEAN countries from rising

Future CFO

Policy measures taken by the ASEAN-5 economies – Malaysia (A3 stable), the Philippines (Baa2 stable), Indonesia (Baa2 stable), Vietnam (Ba3 negative) and Thailand (Baa1 stable) – will reduce some of the negative effects of the coronavirus outbreak, but will not offset the rising recessionary or credit risks for most sectors, said Moody’s Investors Service recently. The post Stimulus measures fail to stop credit risk of five ASEAN countries from rising appeared first on FutureCFO.

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Zest AI CEO: Artificial Intelligence Is Reshaping Lending and Credit

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De Vere said one key thing AI and ML can do is help remove bias based on race, gender, age or other factors from the credit-approval process. He said everyone in banking — from small credit unions to giant U.S.

Math 109
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FinTech Jeff Aims To Boost Lending To The Underbanked In South Asia

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With no credit scores, limited financial transaction histories, and a huge amount of people who don’t even have a bank account, lending money in Vietnam is no simple task. Alternative Credit Score Building.

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How Mastercard Uses AI To Fight Fraud And Make Better Credit Decisions

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Mastercard is harnessing artificial intelligence (AI) in a bid to hit fraudsters hard by searching for emerging patterns of criminal activity before they become major problems, two top executives told Karen Webster during Mastercard’s Virtual Cyber & Risk Summit. “In

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New Data: Share Of FIs Using AI Has Increased 70 Pct

PYMNTS

Even more significantly, our research shows that FIs are using AI with greater focus than they have in the past, with two areas emerging as key applications: payments fraud and credit risk.

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Nav CEO On Breaking SMB Financing’s ‘Black Box’

PYMNTS

That was what inspired the founding of Nav as a business financial management app that gives SMBs free access to business and personal credit reports, as well as suggestions for how to improve their ratings, then matches them with financing products that meet their needs. Yet, without personal credit cards maxed out by President Sergey Brin and CEO Larry Page of Alphabet , there might well have been no Google. Evaluating Customer Credit.

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Credit2B Launches Real-Time Business Risk Analysis Tool

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Commercial credit risk solutions provider Credit2B is rolling out a portal for trade credit suppliers to share and access information about B2B payment experiences in real time. 14) that it has launched the Credit2B Global Platform, which aggregates data of 250 million businesses across 225 countries, enabling suppliers to access key information about payment experiences, receivables metrics and trade references to analyze trade credit risk.

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Euler Hermes, C2FO Team Up On Unpaid Invoice Protection

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Alternative small business (SMB) finance company C2FO is integrating a new solution from Euler Hermes to help small businesses protect against the risk of unpaid invoices. 21), C2FO and Euler Hermes announced their partnership, which will link C2FO small business customers with Euler Hermes’ Single Invoice Cover product, protecting B2B firms against the risk of non-payment and optimizing credit terms for buyers.

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On Capitol Hill, Credit Bureau CEOs Say Reporting Changes Are In the Air

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Executives from the trio that has come to dominate credit reporting — Equifax , Experian and TransUnion , of course — appeared on Capitol Hill and gave testimony before the U.S. Per the memorandum offered by the Committee: “Our nation’s credit reporting system has an impact on almost every American. Credit scores and credit reports are increasingly relied upon by creditors, employers, insurers and even law enforcement.

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What Smart, Conversational AI Adds To Credit Scoring

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Traditional credit-scoring models have not had it easy in the court of public opinion over the last few years. The complaints vary in their specifics, but all revolve around a basic premise: The old credit-scoring models are too backward-looking in a world where real-time data is available — and they are insufficient to the task of properly assessing risk. The problem was he had no credit history.

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Fundbox Pay Expands To B2B Marketplaces

PYMNTS

The flow of commerce and capital gets bogged down in phone calls, applications, emails and inefficient risk profiling based on traditional credit models. Credit offered at the point of sale (POS) is a concept that, done successfully, can help smaller firms move away from inefficient processes rooted in paper, and can mean the difference between taking on a project and growing … or not. 25) morning that it has expanded access to its business credit solution Fundbox Pay.

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Mastercard Announces The Launch Of AI Express

PYMNTS

Among critical issues the AI Express program was designed to address are: anti-money laundering, fraud risk management, cybersecurity, credit risk prediction and operational efficiencies. Mastercard AI AI Express AML credit risk Cybersecurity fraud MasterCard Merchant Innovation News What's Hot

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Esker?s Credit Management Tool Aims To Improve Credit-To-Cash Process

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Process automation and cloud computing firm Esker has announced its new Credit Management solution to aid companies in getting the most out of their credit-to-cash processes, manage risks and make the credit approval process more efficient overall, according to a press release.

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PayNet Links Community Bank BNB To Small Biz Loan Tech

PYMNTS

Small business credit analysis company PayNet is linking up with a community bank to streamline SMB lending for the institution. The FI will use PayNet’s Credit History Report and MasterScore v2 as part of its efforts to fully digitize the SMB lending process, with the PayNet solutions enabling the bank to automate risk assessment and loan approvals for borrowers.

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Reading Tea Leaves – And Ripple Effects – Of Corporate Default Risk  

PYMNTS

The scenario comes to mind in the wake of news that default probability risk is increasing among companies owned by private equity firms. The Wall Street Journal reports that such risk is 2.5 That estimation comes from analytics firm Credit Benchmark. The gap can be explained by the fact that private firms have been able to take on debt, and at higher rates (due to higher risk) than has been seen with public firms.

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India Energy Utility Launches AR Tracking App For Suppliers

PYMNTS

Last year, the nation’s third-largest non-life insurance company, HDFC ERGO, announced a new insurance product for B2B suppliers that offers them trade credit insurance. The product provides credit for suppliers in instances in which their corporate customers have failed to pay an invoice. No industry or company is immune from trade credit risk, and the failure of a buyer to pay for the goods or services purchased can have a catastrophic impact on the viability of a supplier.”.

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LendingTree Looks To Boost Borrowers’ Credit Score With Acquisition

PYMNTS

Alternative lender LendingTree is expanding with the acquisition of Ovation Credit Services, the company said Friday (May 11). million for the credit services company, the firms said in a press release. Ovation Credit Services offers a credit repair software solution that integrates directly with credit bureaus. The firm also offers consumers credit improvement education.

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Insurer To Safeguard India’s Suppliers Against Nonpayment

PYMNTS

In an announcement last weekend, HDFC ERGO General Insurance Company announced the launch of its Trade Credit Insurance Policy, a way to insure trade credit for suppliers in case corporate buyers fail to settle their debts. According to the firm, trade credit insurance is particularly important in a globalized B2B trading environment. Trade Credit Insurance will provide a safety net for supplier to do business with peace of mind,” the executive continued.

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LendingPoint’s Loan Hero Acquisition To Expand Credit Options For 145M Consumers

PYMNTS

Although they both had similar ideas about the use of technology to improve credit decisioning at the consumer’s point of need, they pitched to different consumers and used very different channels to acquire customers. LendingPoint’s focus: near-prime customers who apply for credit online. Today, LendingPoint’s sweet spot is risk modeling , which enables them to underwrite loans for borrowers who are otherwise likely to be overlooked, or undervalued, by traditional scoring methods.