Fintech companies today are struggling to be competitive, profitable, and maintain acceptable levels of risk.
Yes, they enjoyed a meteoric rise, but as loans began defaulting and their volume continued it took real human resources to address these issues – an asset they desperately lacked.
The result? Fintech companies have pulled back their lending requirements, raised prices, and reduced volume.
As a lender I can say that 90%+ of loans we close require “out of the box” thinking during underwriting.
It may be possible to one day use machine learning to accomplish this but I suspect the losses/pains experienced by high volume lenders today will be a painful reminder that they may want to rethink the massive initial investment to set up AI.