Data enrichment is the secret sauce in digital lending
In discussing financial technology, it’s crucial to emphasize the significance of “what it does” over “how it works” for most individuals. We aim to highlight the vital role of data and data enrichment in digital lending, enhancing credit efficiency for business owners and executives. At Vergent, we prioritize an intuitive interface that ensures a seamless working experience. The layout, designed with precision, places elements optimally, fostering a supportive environment that enhances performance.
YOUR DATA’S NEED FOR ENRICHMENT
Enriching data involves leveraging external data sources and internal artificial intelligence (AI) and machine learning (ML) to make informed decisions and continuously improve decision-making processes. Machine learning, a subset of AI, mimics human cognition by considering environmental factors to make predictions. It utilizes algorithms and statistical models to handle multiple tasks simultaneously, drawing on patterns and inferences from extensive datasets. This approach is instrumental in evaluating a borrower’s suitability for a specific loan in terms of size, type, and duration.
A USE CASE (AND ADDITIONAL DEFINITIONS)
In the realm of AI, the term “deep neural network” emerges, operating at the intersection of incoming datasets and decisions or inferences. This network applies the most relevant formula for a given task, considering various factors. To illustrate, imagine a dataset containing images of 73,000 tree species. The neural network streamlines timber grading by distinguishing between hardwood and softwood for specific furniture characteristics. The depth of these intelligent systems enhances accuracy, emphasizing their value in aiding complex tasks.
THE GROWING NEED FOR DATA ENRICHMENT
The demand for data enrichment is soaring, driven by the exponential growth in “big” data stored in data centers—from 25 exabytes in 2015 to 403 exabytes in 2021. This surge is justified by the intricate nature of creditworthiness assessment, which involves processing millions of data points efficiently. Automation through AI has revolutionized credit checks, significantly reducing risks, eliminating human errors, and lowering operational costs.
UNLOCKING POTENTIAL WITH DATA
Every business possesses a substantial data layer that often remains underutilized. Neglecting this potential hinders access to around 45 million US adult consumers with limited or no credit history. Your business generates valuable proprietary information that can enhance credit scoring, inform application forms, and provide insights into customer responsiveness and preferences.
BEYOND THE SURFACE
Traditional data, like credit scores, is supplemented by alternative scoring data, including mobile device usage, e-commerce, and social activities. Data enrichment enables the extraction of meaningful insights, allowing for informed credit decisions and improved functionality.
AUTOMATION IS KEY
The sheer volume of data necessitates automated AI-driven scoring and decision-making processes. This technology efficiently manages vast data flows, ensuring they contribute to guiding credit decisions rather than remaining unused in opaque databases. Vergent’s AI expertise empowers lenders with unique insights for improved portfolio management and greater accessibility to low-risk lending for consumers.
Contact Vergent today for answers to your questions or to schedule a demo and experience firsthand how Vergent can elevate your lending operations.
