How Artificial Intelligence Can Keep Banks Safe From Delinquent Debts

If the financial services industry were truly using artificial intelligence the right way, there would be no delinquencies, argues the chief executive of a machine learning company, because anyone who would be likely to fall behind on their payments would be identified well before they fell behind on their payments.

By looking at data such as how often an individual visits an ATM or how often an individual uses the overdraft on his or her checking account, financial services organizations could identify that person’s likelihood of being able to pay down debt, said Dr. Akli Adjaoute, chief executive of Brighterion, which is owned by Mastercard.

With artificial intelligence, there would never be anything such as individuals who are chronically delinquent, Adjaoute said. Artificial intelligence would make it easier to separate individuals who are generally good about making their payments but are having some form of temporary setback from those who have a proven track record of not making their payments.

Should an individual become delinquent, artificial intelligence would also help choose the best communication strategy to ensure contact is made and a personalized payment plan is put into place.

EDITOR’S NOTE: The ARM Perspectives Podcast, sponsored by Ontario Systems, has dedicated two episodes to looking at the usage and application of artificial intelligence in the ARM industry. Check it out here!

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