CCR Magazine

You are here  :Home arrow News arrow The role of AI in lending and leasing
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines


Commercial Credit News


The role of AI in lending and leasing PDF Print E-mail
Friday, 07 July 2017
At the annual Linedata Exchange Europe conference in London, Bertrand Cocagne, Head of Product at Linedata Lending & Leasing, outlined the obstacles AI needs to overcome to be a real game changer in lending and leasing:   “Artificial Intelligence (AI) is by no means a new buzz word and we’re already seeing examples of it being used to significantly increase efficiencies around new business processes in lending and leasing. In the last ten years we’ve seen a major step forward. In small ticket and auto finance some lenders are using automated credit scoring to underwrite almost a 100% of deals. The trust however is not there yet across all segments of asset finance, and in the more complex and bigger ticket credit cases AI is no more than a guide helping humans validate decisions.

“Automatic credit scoring and processing is arguably the most advanced use of AI in asset finance. In theory, masses of back-office data built up over decades around the customer, their assets and payment history should inform the decision on whether to accept or refuse credit. The sticking point is what type of criteria is being used to reach the decision, and whether it’s in contravention of fair lending laws and regulations. In the absence of being able to predict how a system is going to use the data, businesses need to be extra vigilant with the type of data being input and also be able to explain why the decision was reached.

“For loan origination, AI is already finding its role as a sales adviser, helping with customer decisions through the automatic analysis of supporting documents. It’s a great system to speed up processes, but on the flip side it boils down to whether people can trust the technology enough to allow an algorithm to manage their money, or if traditional human interaction will prevail. For now it’s a combination of humans interpreting data presented by AI, including key analysis that helps to direct both sales and credit activities.

“Acquiring an empty artificial intelligence unit is easy, and in our increasingly connected world gathering mases of data from the back office doesn’t present a problem. The most difficult task for any business looking to deploy AI is how to train the system. It’s only by improving learning methods we can truly realise this technology’s real potential.”

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online


CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road

Registered in England No: 05483197