Artificial intelligence (AI) is woven throughout everyone’s daily life. It is so prevalent that most people don’t think about AI as our navigation systems propose new routes based on real-time traffic, offer grammar and spelling suggestions as we write or create hilarious—and sometimes embarrassing—texts with autocorrect. As technology has evolved, the opportunities for AI adoption to increase efficiency and productivity in all industries have grown, including the financial industry. “One of the most obvious benefits of AI is the ability to automate underwriting to support credit decisions,” said NAFCU’s Director of Regulatory Compliance Nick St. John, NCCO, NCBSO. Predicting borrowers’ likelihood to repay the loan is a critical component of underwriting. “While credit scores based on reports from the different credit bureaus have been used to quantify that likelihood, AI-based underwriting programs claim to be better able to pinpoint, or more accurately predict, borrower repayment behavior,” he said. “AI can expand the underwriting process to include a number of data sources, far more than a human can handle in a timely manner, which could make the process more efficient and less risky.” AI ENHANCES SERVICE AND SUPPORTS GROWTH Consider compliance, staff and member needs before implementation By Sheryl S. Jackson 13 THE NAFCU JOURNAL November–December 2023
RkJQdWJsaXNoZXIy Nzc3ODM=