Credit risk assessment and loan default prediction
Smart credit risk assessment and loan default prediction.
Enhance decision-making with accurate, data-driven insights.
Project Overview
Industry: Banking & Financial Services
Scope: AI-powered credit scoring and risk prediction
Project Duration: 5 months
Team Size: 2 AI engineers, 2 risk analysts, 1 compliance officer
Business Challenge
The bank faced high default rates and inefficient manual credit assessments. Key issues included:
- Inconsistent evaluation criteria across analysts
- Long loan approval times frustrating customers
- High non-performing loan ratio reducing profitability
- Regulatory pressure to improve risk assessment
Our Approach
We built an AI credit risk model to assess borrower default probability and automate loan approvals.
Capabilities:
- Machine learning–based risk scoring from historical loan data
- Real-time default probability prediction
- Automated loan approvals for low-risk applicants
- Explainable AI outputs for compliance requirements
Results
- 40% reduction in default rates
- Loan processing time cut from 7 days to 1 day
- Improved fairness and consistency in credit decisions
Business Impact
- $5M annual savings from reduced loan losses
- Higher customer satisfaction due to faster approvals
- Stronger compliance with risk regulations
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