AI for Credit Modelling Use Cases

Credit risk modeling is a commonplace technique applied by financial organizations to determine specific borrowers' risk level. Parameters analyzed to determine credit risk include the individual's financial statements, default probability, loan settlement history, the user's past transactions, their age, the industry of employment, etc. Banks use credit scores to perform risk-based pricing, which means borrowers with a lower credit score are likely to receive loans on worse terms with higher interest rates.