Enhancing Credit Risk Management with a Mobile App Solution

Our Approach

Our approach was to develop a mobile application capable of integrating the ability of AI/ML to perform real-time credit risk assessments and arrive at speedy loan decisions. This should be a strong enough tool for the client to not only determine the exact rate of risk but also ensure efficiency in operations.

Our Solutions

A3Logics developed a fully functional mobile application that would meet the needs of the client in managing credit risk via:

AI-Driven Credit Risk Scoring: The app will give a Credit Risk Score to every applicant for a loan through AI/ML algorithms. This would be done with an in-depth analysis of parameters like repayment behavior and financial history.

Real-Time Loan Decisioning: The application provided real-time recommendations on whether to approve the loan and at what interest rate. High-risk applicants were to be charged high interest rates to provide the optimal experience to the client while balancing risk and profitability.

Identification of Parameters: Key factors materially impacting repayment behavior were to be identified in the application through supervised machine learning algorithms and integrated into the risk-scoring model.

Integration into Existing Model: The application integrated with existing infrastructure to ensure that the credit risk model provided actionable insights right within their workflow by seamlessly integrating into the client’s existing loan application dashboard.

User-Friendly Interface: Intuitive in design, the application made the assessment of risk and recommendations easy and accessible for the credit team to interpret efficiently. 

Benefits

Increased ROI: The LLM models led to a remarkable 10% increase in annual ROI on equity investments, rising from 20% to 30%.

Reduced Expenses: By automating tasks previously handled by market researchers, the team size was reduced from 10 to 2, resulting in a 20% cost saving on operational expenses.

Enhanced Customer Acquisition: The improved investment performance led to a 15% increase in new client onboarding within a year.