The AI Decisioning Revolution in Business and Commercial Lending

Sydney, Australia | 01 November 2023

The convergence of artificial intelligence (AI) with established industries such as business and commercial lending signifies a profound departure from traditional banking methods. Our RDC AI Decisioning Platform exemplifies this transformation, delivering not only enhanced efficiency but also heightened precision in decision-making processes. To explain this concept, we draw parallels from Nobel Prize-winning Psychologist and Economist Daniel Kahneman’s depiction of the human brain.

Kahneman describes two distinct modes or “systems” of thought:

  • “System 1” embodies rapid, instinctive, and emotional responses.
  • “System 2” operates at a slower pace, engaging in more deliberate and logical reasoning.

By leveraging the capabilities of both intuitive and analytical thinking processes, one can envision the revolutionary potential within the lending landscape.

System 1: The Fast Thinker

Representing the swift and instinctive mode of thinking, System 1 excels in pattern recognition and adaptability. Within our AI Decisioning Platform, machine learning models swiftly analyze transactional and borrower data, identifying behavioural patterns that might elude human observation or require time to discern. This rapid analysis is indispensable in today’s dynamic economic landscape, where changes can occur suddenly and with significant impact. By continually processing real-time data, our platform delivers timely and pertinent insights.

System 2: The Deliberate Analyst

In contract, System 2 provides a deliberate, slower approach, ensuring lending decisions aren’t solely driven by sped. By enabling human experts to interact with and guide the AI, our platform integrates human knowledge but also enhances the AI Decisioning tool over time. It ensures that machine learning predictions undergo thorough analysis, contextualisation, and alignment with regulatory and compliance standards.

A Harmonious Collaboration

Our platform’s greatest strength lies in its ability to harmonise the strengths of both thinking modes. In an industry where speed and accuracy are paramount, our dual-thinking approach ensures that lenders need not compromise one for the other.

Daniel Kaheman emphasised the importance of decision hygiene. Through RDC’s Self-Describing Decision feature, our platform meticulously captures each decision, including input data, model outcomes, applied rules and decision outcomes. This grants human experts complete transparency and explainability into AI-generated decisions, fostering continuous learning and evolution in decision strategy.  

The Future of AI Decisioning

Our platform is poised to redefine the commercial and business lending sector. By seamlessly blending intuitive and analytical capabilities, it equips lenders with a tool that is both swift and meticulous, enabling better decisions. As we continuously embrace advancements in artificial intelligence and machine learning, our AI Decisioning Platform evolves rapidly, ready to disrupt and transform various aspects of the credit lifecycle. With the abundance and accessibility of data, the potential for intelligent decision-making is boundless.

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