What Role Does AI Play in Digital Lending?
Although some say the second AI winter ended in the late 1990s, artificial intelligence remained on the sidelines of digital lending until November 2022, when Chat GPT 3 made its groundbreaking debut. Since then, everything has changed. Companies have been racing to integrate AI into their processes, and in this article, we’ll explore ApPello’s unique approach to harnessing this technology.
The ApPello Journey: A Cloud-Based Transformation
Before diving into the specifics, it’s worth noting that 2020 marked a pivotal moment for ApPello’s product development. We embarked on a comprehensive transition to a cloud-based microservices architecture, which allowed us to integrate advanced AI capabilities. This shift also led to a complete overhaul of our Low-Code development platform, setting us apart from many banking software providers. With our Low-Code platform, end users gain complete control over their software, enabling them to redesign processes, interfaces, and business logic without the need for extensive programming expertise. This technology helped us in AI tools adaptation.
We have harnessed AI in several key areas:
1. AI Empowering Business Users – The ApPello AI Engine
Our AI engine has been an essential part of our development for years. It operates as an AI “black box” solution that processes vast amounts of data, and using regression functions and neural network-based calculations, finds correlations that help in assessing new loan applications and developing debt collection strategies.
The process begins by importing data from various sources. Most of our clients have large data warehouses (DWH) enriched by third-party data from sources such as credit bureaus, scoring agencies, and analyst firms. After data cleansing and quality improvements, the AI engine analyses. Once these relationships are established, the system undergoes continuous learning, refining its predictions and insights. The data is split into two segments – 90% for training and 10% for testing – to ensure accuracy. Common use cases include propensity to buy, collection optimization, and early warning signal analysis.
2. AI Streamlining Loan Origination Workflow Configuration
ApPello’s Cloud Development Platform (CDP) is a Low-Code platform built around a workflow engine, drag-and-drop screen editor, and the MVEL Rule Engine, which enables users to configure validation, calculation, and screen layout rules. However, with the help of Chat GPT-4, users can now configure these elements in plain text, without needing to learn rule engine syntax, dramatically simplifying the process.
3. AI Supporting Software Developers
In our software development workflow, we utilize the IDEA platform for programming, where AI significantly accelerates code generation and improves accuracy in development. The AI Assistant in IntelliJ IDEA helps by providing intelligent code suggestions, automatically refactoring code, and detecting potential issues early in the development cycle. It also assists with code documentation, optimizing the debugging process, and integrating seamlessly with various frameworks, enabling faster and more efficient project management.
Final Thoughts
In today’s rapidly evolving lending landscape, staying competitive requires more than just innovation—it requires the right technology. ApPello’s AI-driven solutions, combined with our low-code platform, provide financial institutions with the flexibility to adapt, scale, and thrive in an increasingly digital environment. By leveraging AI to enhance decision-making, streamline development, and optimize workflows, we empower businesses to deliver faster, smarter, and more flexible lending solutions.
Visit us and find out more about the products at https://appello.com/platform.
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