Banks tap AI to spot loan defaulters before they miss payments

A futuristic bank building surrounded by a digital light-colour background.

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For decades, banks have looked at customers' payslips, account statements, credit histories and collateral to decide if one can repay a loan. Once the money is disbursed, they often have to wait and hope repayments arrived on schedule.

With the increasing adoption of AI technologies such as machine learning, natural language processing and large language models, however, lenders are assessing borrowers beyond the point of approval.

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