C H E Q U I N G O U T analyse potential borrowers according to this framework .
C H E Q U I N G O U T analyse potential borrowers according to this framework .
Of course , I completely recognise this is all well and good for the JP Morgans of this world , who certainly have the liquidity to splash the cash on any innovative emerging techs that break onto the scene . But , still , that ’ s not to say the smaller players of the US ’ diverse and vibrant banking sector would be left in the dust .
These regional and community banks , institutions with total assets between US $ 10 and US $ 100 billion and those with less than US $ 10 billion in assets , respectively , could partner up with AIfocussed startups – and collaborate to modernise how they analyse the credit risk of new borrowers . Teaming up with these startups would allow regional and community banks to enjoy the efficiencies of AI and ML without skimping on quality . FinTech experts , for example , already know the processes of building these systems through and through – they could handle all of these , including the building of data lakes , all without regional and community banks incurring the pitfalls and costs of experimentation in-house .
The time to make this jump is now . The memories of last year ’ s banking crisis are still fresh , and while banks across the States will definitely be eager to dish out credit , they have to be wary of striking a balance between growth and caution . We ’ ve seen what faulty risk management , in any form , can do to key regional institutions – those lessons cannot be forgotten .
Yerbol Orynbayev
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