Software meant to help understaffed lenders approve small-business loans
Japanese information technology group Fujitsu will offer financial institutions a credit-scoring tool that uses artificial intelligence to screen prospective borrowers.
„The Tokyo-based company envisions the cloud-based software, which will be available starting in October, being used by lenders mainly to assess small, owner-operated businesses.”, according to Asia Nikkei.
Fujitsu sees a need for such tools amid a shortage of data specialists available to perform credit analysis in Japan’s financial sector.
With financial technology startups proliferating, the IT-industry blue chip seeks to draw on its existing customer relationships in marketing the AI software.
Credit scores will be generated based on such information as bank and business transactions. Lenders will need prospective borrowers’ consent to use such data.
Fujitsu has yet to decide on pricing for the tool but envisions offering both flat-rate and performance-based plans. The latter would let Fujitsu receive compensation if the tool leads to an approved loan.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”