From automated loans to providing better user experience and to include everyone in the financial system, FinTech companies are using the power of technology and Artificial Intelligence (AI) innovation to fill the gap left behind by the traditional banking sector. AI is demonstrating the potential to make the availability of financial services to everyone in a better, faster, and cheaper manner. In the African continent, AI brings in opportunities to bank the unbanked.

Artificial Intelligence at the core of digital transformation for Africa

Artificial Intelligence increases the pace at which financial institutions operate, manage data, and interact with customers. AI is a blending of machine learning, natural language processing and cognitive computing which huge potential to boost up the financial services industry. With the ability to mimic, extend and amplify the thought process of a human analyst at a pace and scale unmatched by humans, trillions of transactions in every possible portfolio in the organisation can be explored and exploited in various ways.

Africa is a continent which has an issue of unbanked population with some part of the continent not connected with the financial system due to lack of proper identity, documents, credibility and lack of information.AI has the potential to advance nearly every field of human endeavour and address countless societal challenges. The issue of poor credit-scoring can be perfectly solved as with AI financial institutions can rewrite credit-scoring algorithms to better capture current realities based on observed customer patterns through the platform for better credit scoring wit potential of including everyone in the financial system.

AI for better credit decisions creates a thump up opportunity for the unbanked

A better and faster assessment of a potential borrower with precise inclusive information, borrowers credit-scoring becomes fairer and accounts for a wider variety of factors prompting opportunity for lower borrowing costs. Borrowing at high limits some opportunities for the borrowers, at a lower borrowing rate with a data-backed decision the African can feel more connected with the financial system. It helps lenders distinguish between high default risk applicants and those who are credit-worthy but lack an extensive credit history. Therefore with more accessibility to funds, the Africa community will be included in the financial system as the barriers which previously created obstacle to get access to funds is removed with AI.

Moreover, AI creates a fair level playing field as unlike a human being, a machine is not likely to be biased. Therefore a fair level in the financial system gives rises to a larger population to participate in the financial system and get access to funds and other financial products.

AI gives rise to digital banks and loan-issuing apps using machine learning algorithms to use alternative data (e.g., smartphone data) to evaluate loan eligibility and provide personalised options. A more personalise option creates more possibilities for the African community to finance their project and meet their financial needs requirements.

The low-income segment is no more excluded in the financial system as with AI as there is no single “best source” for data because of the degrees of variations and disparate knowledge sources that exist.  This gives rise to an opportunity to build their identity and basic profile will enable providers to deliver services to them in ways they could never have previously done. AI pushes the frontiers of advanced analytics with an inclusive synthesis of disparate data sources for an informed decision that can accelerate financial inclusion in Africa.

This one feature that is better credit-scoring creates more possibilities for financial inclusion in Africa. If a single feature can bring this much when AI is used at its maximum potential to boost up financial transaction system efficiency as well as reducing cost implying in the financial system, much more inclusion impact will be present for Africa. It is the perfect solution to create financial inclusion for Africa as it destroys all the barriers which excluded African people in the financial system.

Financial technologies are here to stay and will surely keep improving and bringing new and improved systems to work with. It could be the answer to your business efficiency problems. So, approach NanoBNK and see how we can help you move up in the world. Contact us on +230 460 1736 or email us