Artificial intelligence (AI) and machine learning (ML) are transforming how financial institutions approach credit decisions and traditional banking processes. By incorporating AI into the credit decisioning process, financial institutions can help create a more inclusive, intuitive, and impactful financial services landscape.
What is Explainable AI and Why Is It Important?
The concept of explainability—i.e., the ability to clearly communicate the process behind AI’s decision-making and understand the model’s inner workings—is of the utmost importance. AI refers to the capacity of a machine to mimic human intelligence by learning from experiences, adjusting to new inputs, and performing tasks—some simple, others deeply complex—that traditionally require human intellect.
Explainability fosters trust and accountability in AI systems, enhances regulatory compliance, and helps model improvement and optimization over time. It empowers stakeholders to make informed decisions based on AI outputs and creates greater understanding and acceptance of AI technology in various domains, including credit modeling.
How Can Explainable AI Make Credit Decisioning More Efficient?
Infusing AI into the lending process is about reshaping the traditional banking technology and improving it with more sophistication and insights.
“All this is possible because we’re now at a technical standpoint that we weren’t at thirty or even ten years ago,” says Mark Doucette, Senior Manager – Engineering at nCino. “We have vast amounts of data, and now we have machines that can process that data faster than ever before. For the first time in human history, we’re ready to put that technology to work.”
With the help of these new technologies, industry leaders are shaping a world where financial services are more inclusive, intuitive, and impactful than ever before. "Financial institutions should not wait to harness the power of AI,” says Peter Fabbri, Master Product Manager – AI Solutions at nCino. “Over the long term, AI will revolutionize the banking industry. The time is now to leverage these transformative tools."
Where Can I Learn More About AI and Credit Decisioning?
The potential of artificial intelligence with machine learning in banking cannot be overemphasized. From offering personalized, efficient, and secure experiences to reducing bias and improving model accuracy, AI is poised to completely redefine the banking industry.
In our latest white paper, experts from nCino explore the significance of explainability and interpretability in AI models, and the importance of transparency, accountability, and human relevancy when using AI in the financial services industry. To learn more about explainable AI and the future of finance, download the white paper now.
