This extraordinary growth of over 1200% over the 5 years will be driven by lenders seeking to leverage AI to rebuild and streamline their lending operations following the dramatic impact of the pandemic.
The report identified that lenders, who have been reeling from the effects of bad debt write-offs and repayment holidays, will seek to leverage AI models in order to more accurately assess and mitigate the risks that consumer and business customers represent. This will enable lenders to build more sustainable lending models in the wake of the unprecedented economic turbulence.
The new research, AI & Automation in Banking: Adoption, Vendor Positioning & Market Forecasts 2020-2025, found that consumer lending is driving overall AI lending and will account for 66% of loans by value underwritten by AI in 2025. AI, when combined with services such as Open Banking, can build a comprehensive picture of financial status and anticipate future risks. Juniper Research recommends that lenders leverage these AI capabilities to expand their portfolios post-pandemic to those without detailed credit files.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now