Startup uses artificial intelligence to predict credit risk


Posted at Jul 25 2017 06:43 PM

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Artificial intelligence (AI) is popping up everywhere, from self-driving cars to home automation, but a startup from South Korea saw an opportunity to employ this emerging technology in financial services. 

Soowon Sophie Eom, co-founder of Solidware, said their company uses AI to help financial companies give better credit scores and minimize the risk of loan defaults, compared with more traditional statistical methods.

"Even for a bank with a solid credit scoring system, the default rate is never zero. We cannot make exact zero either, but we try to reach zero," she said to ANC's Cathy Yang on the sidelines of the Forbes Under 30 summit.

Eom said that using their software, a client bank was able to reduce its default rate from 2.5 percent to just 1 percent.