Woohoo AI
SOFTWARE: Expert AI, H2O
SERVICES: AI
WEBSITE: www.woohooai.com
02. The Solution
In financial services the competition for customer share of wallet is intense with firms looking for every advantage in marketing while fighting fraud, money laundering and other issues. Companies that are making extensive use of AI are reaping the benefits of increased customer satisfaction and loyalty, decreased fraud, and reduced regulatory penalties which adds to their bottom line.
These companies are using AI for a number of scenarios including anti-money laundering, fraud detection, credit risk scoring, and churn prediction. WooHoo AI, the open source and automation leader in AI, is empowering leading financial services companies to deliver AI solutions that are changing the industry.
AI, especially time series modeling, is particularly good at looking at series of complex transactions and finding anomalies.
03. Challenges
Some financial services customers become quite valuable as they generate fees on transactions and grow a portfolio of business over the years including banking fees, credit cards, home loans, personal loans and more.
Simple churn analysis uses rules based on known behaviors to identify potential churn risks. Rules-based systems, however, are inflexible and miss many customers who do churn and generate false positives that end up giving expensive incentives to customers who were not at risk to leave the bank.
03. Opportunity
AI is a great solution for credit scoring using more data to provide an individualized credit score based on factors including current income, employment opportunity, recent credit history, and ability to earn in addition to older credit history.
This more granular and individualized approach allows banks and credit card companies the ability to more accurately assess each borrower and allows them to provide credit to people who would have been denied under the scorecard system including people with income potential such as new college graduates or temporary foreign nationals.
AI can also adapt to new problems, like credit card churners, who might have a high credit score, but are not likely to be profitable for the card issuer. AI can also satisfy regulatory requirements to provide reason codes for credit decisions that explain the key factors in credit decisions.
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