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(n) in the context of credit processes, automated decisioning refers to systems that use algorithms and artificial intelligence (AI) to assess creditworthiness and determine outcomes, such as loan approvals or credit limits, without the need for human intervention.
There is a common fallacy associated with automated credit decisions right now. Much of the credit conversation regarding AI has been focused on the output level: how many credit decisions can be processed, faster?
We’re much more interested in refining credit process automation at the input level.
Standardization with AI shouldn’t happen when all the data is already in your decision engine. Automation should be used to standardize the inputs. For example, let’s say you can create a perfect algorithm for credit decisions with borrower revenue as a key defining calculation.
But what if the self reported revenue is factually incorrect? What if the borrower’s accounting is different than yours? Intentional or accidental miscalculations of this one figure could result in a false positive decision.
A trusted decision is not derived from more data, it is always contingent on the quality, source, and integrity of the data.
We built a system that automates onboarding to underwriting because we operate with this first principles approach to data.
Only when ‘truth’ goes in, can truth be revealed by a decision algorithm.
By automating the gathering and assembly accurate, real-time financial data—such as income, assets, and liabilities—lenders can reduce reliance on manual inputs or [self-reported financials](#self-reported-financials), leading to more reliable, transparent, and efficient credit assessments.
SOLO’s philosophy for the use of AI in credit is not just to arrive at a decision faster. 01PULL, our platform for lenders, shifts the usage of AI in credit processes to the beginning of a credit decisioning system.
This shift in the application of automation in credit enables a more seamless and accurate credit evaluation process by ensuring that automated decisions are based on high-quality, up-to-date information.
