Blog: The 4-day Secret to Superior ROI
How Financial Services Firms can Apply Artificial Intelligence Effectively
The most frequent question we get asked by leaders from the financial services sector is:
“How can we integrate AI into our processes and increase ROI?”
This article outlines our approach.
A financial services firm approached us last year to help improve their loan underwriting process. Their existing approach involved analyzing information provided by each loan applicant along with their credit history to assess whether or not that applicant met lending criteria.
Even when facilitated by digital processes and “rules-based lending models”, the underwriting process was largely a manual one, often took multiple days to complete, and involved many people.
How can we develop a credit risk model that can help underwriters determine whether to lend to a specific applicant… in seconds.
We developed an algorithm powered by machine learning and AI that deeply analyzes millions of historical loan applications and loan performance data, recognizing patterns that can predict how a new loan applicant is likely to perform in the future, all within seconds.
This new model is forecasted to reduce current default rates by 5% to 10%, improve profits, reduce portfolio risk, and shorten the underwriting process from days to seconds.
Our 4-day Approach
We use Google Design Sprints to research, design, prototype, and test a new solution to transform businesses using Artificial Intelligence.
After the sprint, the team will have a clear understanding of whether the solution prototyped is:
Viable from a business perspective
Desirable to the end user.
If the outcome is positive and senior management gives the go-ahead, we work alongside the organization’s teams to develop and deploy the solution into production.
We also provide post-launch support, documentation and user training.
Interested in running an AI Sprint?
Please reach out to us to learn more.
Jameel & Monish
Jameel Somji, CFA is Founder & CEO of SpiNovation Labs, a product design lab that applies 4-day Google Design Sprints, a proven methodology for solving problems through designing, prototyping, and testing ideas with users rapidly with as little investment as possible in as real an environment as possible.