Prediction of loan repayment

Preventing non-paying customers

What is prediction of loan repayment?

In most credit giving institutions, it is essential to know which loan recipient is more creditworthy and who poses a risk. Credit classification predicts how likely a person is to pay interest on the loan. The solution will highlight factors that classify good credit users from risky ones.

3 facts about the model

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Predicting credit default as a standard model is a fast track to AI model implementation.

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The model uses customer data to predict customer default.

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The model enables you to limit your company’s exposure to risk.

Our solution

Our credit classification predicts loan repayments using a supervised algorithm. The model is trained on a data set, describing the customers and their bought services, together with a label (supervised) that classifies the case as a credit default or not. The model stores the customer profile associated with default, and the descriptive variables most likely to classify the cases. While predicting the default probability, the model also produces insights for why it made each prediction.

The business outcome

Using the Grace Standard Model for loan repayment prediction, the customer gets an overview of the likelihood of customer defaults. The company can then direct retention efforts to customers with a high risk, to optimize the portfolio. Furthermore, the company gets insights into what drives credit defaults, and with this information, can adapt to improve customer experience and lower the risk exposure.

Interested in taking AI into production?

If you think this model would be relevant for your organization go-ahead and book a demo! We would love to help you get started. Otherwise, you can download our Grace Enterprise AI Platform brochure for more information.