Why perform credit ratings with AI?
An AI model can offer an excellent solution for more individualized and up-to-date credit ratings. Credit portfolios entail some default rates, so it is critical to keep this as low as possible and spot risky credits early to do something about them. AI-powered credit ratings can optimize credit portfolios.
3 facts about the solution
- Credit rating with a ready-to-use AI model is a fast track to valuable AI implementation for your organization
- The model can spot downgrades and research the impact factors to improve the credit portfolio
- Knowing high risk credit applications upfront could lead to better customer selection or drive action to prevent customers from defaulting
Discover the value of performing credit ratings with AI
Outstanding number loans:
Average value per loan (EUR):
Average interest rate (%):
Average credit default rate (%):
Value at risk (EUR)
Predicted value at risk (EUR)
With an AI model, you can:
Uncover payment at-risk (EUR)
Detect customers at risk
Assumptions (click to expand)
Model fit (%)
We offer a variety of standard models which are ready to be fitted to your data. Credit rating is a standard model that predicts loan repayments and interest payments using a supervised algorithm. This model is trained on a data set, describing the customers, together with a label that classifies the case as a credit default or not. The model stores the customer profile associated with the event of default and the descriptive variables most likely to classify the cases.
The business outcome
Using our standard model for credit rating gives you an overview of the likelihood of customer defaults. Your organization can then direct retention efforts to customers identified as at high risk to optimize the portfolio. Furthermore, you will gain insights into what drives credit defaults, and with this information, you can adapt to improve the customer experience.
Interested in more precise credit assessments with AI?
If you think our solution for credit rating would be relevant for your organization, please connect to book a demo – we would love to help you get started. Alternatively, you can download our Grace brochure for more information.