{"id":18731,"date":"2021-07-19T12:25:04","date_gmt":"2021-07-19T12:25:04","guid":{"rendered":"https:\/\/finbraine.com\/?p=18731"},"modified":"2024-03-19T09:53:18","modified_gmt":"2024-03-19T09:53:18","slug":"revolutionizing-microfinance-industry-with-machine-learning","status":"publish","type":"post","link":"https:\/\/finbraine.com\/fr\/revolutionizing-microfinance-industry-with-machine-learning\/","title":{"rendered":"Revolutionizing Microfinance Industry with Machine Learning"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"18731\" class=\"elementor elementor-18731\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4e0b365c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4e0b365c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-364bcf19\" data-id=\"364bcf19\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3b1d536 elementor-widget elementor-widget-image\" data-id=\"3b1d536\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"443\" src=\"https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2.png\" class=\"attachment-full size-full wp-image-18724\" alt=\"\" srcset=\"https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2.png 800w, https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2-300x166.png 300w, https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2-768x425.png 768w, https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2-440x244.png 440w, https:\/\/finbraine.com\/wp-content\/uploads\/2021\/07\/blog2-600x332.png 600w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e684a0e elementor-widget elementor-widget-heading\" data-id=\"e684a0e\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Revolutionizing Microfinance Industry with Machine Learning<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d3b41f elementor-widget__width-inherit elementor-widget-mobile__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"1d3b41f\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Using AI in a financial business can reduce losses by 23%. That\u2019s the impact of AI! It has affected almost every industry since its inception. From traveling to online learning, everything is powered by Artificial intelligence today. The most significant impact of AI can be seen in the microfinance industry.\u00a0<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">AI has revolutionized the microfinance industry and some of the positive changes that came into effect are as follows:<\/span><\/p><ul><li aria-level=\"1\"><b>Detailed credit assessment<\/b><span style=\"font-weight: 400;\"> &#8211; Gone are the days when traditional credit assessment was part of lending solutions. With the advanced implementation of AI in the microfinance sector, it can be done quickly and way more efficiently. Apart from checking the credit history and credit score, AI is also capable of checking other potential factors including utility bill payments, social media behavior, and more.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Risk analysis and management <\/b><span style=\"font-weight: 400;\">&#8211; AI runs extensive research to analyze a profile. This research is often essential for a microfinance company to run a risk analysis. Implementing machine learning algorithms can make sure risk cases are identified at the early stages.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Am\u00e9lioration de l'exp\u00e9rience client<\/b><span style=\"font-weight: 400;\"> &#8211; This is one of the most important criteria for a microfinance company as their business is dependent on their customers. If the entire lending process is fast and effortless, chances are, a microfinance platform will have recurring as well as new happy customers every day.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Automation<\/b><span style=\"font-weight: 400;\"> &#8211; Think about automation through machine learning. Microfinance is no exception. Leading financial firms worldwide use machine learning or AI implementation to automate their processes. AI introduces automation in every level of the loan process including <\/span><a href=\"https:\/\/finbraine.com\/fr\/services\/loan-origination\/\"><span style=\"font-weight: 400;\">loan origination<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/finbraine.com\/fr\/services\/loan-servicing\/\"><span style=\"font-weight: 400;\">loan servicing<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/finbraine.com\/fr\/services\/loan-collection\/\"><span style=\"font-weight: 400;\">loan collection<\/span><\/a><span style=\"font-weight: 400;\">. It is helpful in saving time as well as cost as opposed to using the traditional methods or workforce.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Helpful in battling fraud<\/b><span style=\"font-weight: 400;\"> &#8211; AI has given the microfinance industry a robust fraud detection as well as a prevention system. By using machine learning or artificial intelligence some of the most serious financial frauds can be prevented, for example, money laundering. Apart from reducing frauds AI also helps in reducing the investigation costs up to 20%.<\/span><\/li><\/ul><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3118282 elementor-widget elementor-widget-spacer\" data-id=\"3118282\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb69d0d elementor-widget elementor-widget-heading\" data-id=\"bb69d0d\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CredBraine - A Perfect Example of AI Revolutionizing The Microfinance Industry<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4bde920 elementor-widget__width-inherit elementor-widget-mobile__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"4bde920\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/finbraine.com\/fr\/products\/credbraine\/\"><span style=\"font-weight: 400;\">FinBraine\u2019s CredBraine<\/span><\/a><span style=\"font-weight: 400;\"> for instance is a perfect example of an AI-based lending platform. It provides banks, micro-lenders, telecoms, and wallet service providers with advanced technology. It allows them to thrive through BIG data analytics.<\/span><\/p><p>\u00a0<\/p><p><a href=\"https:\/\/finbraine.com\/fr\/products\/credbraine\/\"><span style=\"font-weight: 400;\">CredBraine<\/span><\/a><span style=\"font-weight: 400;\"> has revolutionized the way loan origination, servicing, and collection is done. It facilitates lenders with intelligent lending, smart credit, and advanced scoring. Thus giving access to quality credit and acceptance rates.<\/span><\/p><p><b>Benefits of Implementing AI From Customer Point of View<\/b><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">These are the perks of using AI by small businesses or micro-lending companies. However, fintech machine learning provides the best of both worlds. It is also useful from a customer point of view offering benefits such as:<\/span><\/p><p><br \/><b><\/b><\/p><ul><li aria-level=\"1\"><b>Quick KYC<\/b><span style=\"font-weight: 400;\"> &#8211; Instead of spending hours on physical and time-consuming KYC, now micro-lending platform users can do quick e-KYC at the comfort of their homes. By using automatic ID verification, it becomes easier to process the loan application.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Non-traditional credit assessment<\/b><span style=\"font-weight: 400;\"> &#8211; Credit history and credit score were the most basic factors to qualify for a loan earlier. But now with the help of advancement in the microfinance sector through AI, it is also possible for the unbanked to take a loan. Instead of traditional credit checks, your social behavior, utility payments, and other non-traditional parameters will be checked.<\/span><\/li><\/ul><ul><li aria-level=\"1\"><b>Quick credit and repayment<\/b><span style=\"font-weight: 400;\"> &#8211; Unlike traditional loan approval, AI can process your loan quickly. Instead of waiting for several days to get the amount credited into your account, your application will be approved instantly. After the loan gets credited into your account, you\u2019ll be instantly notified. Another advantage of using AI-based microfinance platforms is that you will be automatically notified whenever your due date arrives. It will help to maintain your credit score as well as trustworthiness with the lending institution.<\/span><\/li><\/ul><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dd05d03 elementor-widget elementor-widget-spacer\" data-id=\"dd05d03\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f3c94af elementor-widget elementor-widget-heading\" data-id=\"f3c94af\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1beab46 elementor-widget elementor-widget-text-editor\" data-id=\"1beab46\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">AI or machine learning is still in its beginning stages in the microfinance industry. Although it has made noteworthy changes in the traditional processes of the industry. Needless to say, it is reshaping the industry for good. By adding automation in the processes, it has made it possible to save both time and labor.<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Another added benefit is the security. Since AI can assess both traditional as well as non-traditional data of the user, there are negligible chances of fraud by the debtors. It is not just a boon for the lenders but helps the borrowers as well.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-03afc40 elementor-widget elementor-widget-spacer\" data-id=\"03afc40\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;avante_ext_is_scrollme&quot;:&quot;false&quot;,&quot;avante_ext_is_smoove&quot;:&quot;false&quot;,&quot;avante_ext_is_parallax_mouse&quot;:&quot;false&quot;,&quot;avante_ext_is_infinite&quot;:&quot;false&quot;}\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Revolutionizing Microfinance Industry with Machine Learning Using AI in a financial business can reduce losses by 23%. That\u2019s the impact of AI! It has affected almost every industry since its inception. From traveling to online learning, everything is powered by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":18724,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,57,56,58],"tags":[52,51,54,53,50,55],"class_list":["post-18731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-fintech","category-kyc","category-lending","tag-artificial-intelligence","tag-finbraine","tag-fintech","tag-geo-tagging","tag-kyc","tag-lending"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/posts\/18731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/comments?post=18731"}],"version-history":[{"count":0,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/posts\/18731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/media\/18724"}],"wp:attachment":[{"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/media?parent=18731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/categories?post=18731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finbraine.com\/fr\/wp-json\/wp\/v2\/tags?post=18731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}