Sydney, Australia | 01 November 2023

The AI Decisioning Revolution in Business and Commercial Lending

The fusion of artificial intelligence with established industries such as business and commercial lending represents a fundamental shift from traditional banking methods. Our RDC AI Decisioning Platform exemplifies this evolution, delivering not only efficiency but also increased accuracy in decision making. To explain how this is realized, the description of the brain by Nobel winning Psychologist and Economist Daniel Kahneman provides good parallels. There are two modes or “systems” of thought in the human brain:

“System 1” is fast, instinctive, and emotional.

“System 2” is slower, more deliberative, and more logical.

By harnessing the strengths of both the intuitive and analytical thinking processes, you can begin to consider how to revolutionize the lending landscape.

System 1: The Fast Thinker

This system represents the fast and instinctive mode of thinking. It is adept at pattern recognition and adaptability. Machine learning models within the AI Decisioning Platform can quickly review transactional and borrower data, identifying behavioural patterns that humans might overlook or take longer to discern. This rapid analysis is crucial in today’s dynamic economic environment, where changes can be sudden and drastic. By continually ingesting and reacting to real-time data, the AI Decisioning Platform can provide relevant and timely insights.

System 2: The Deliberate Analyst

This slower more deliberate system provides the counterpoint, preventing lending decisions being made purely on speed. By allowing human experts to interact with and guide the AI, the platform can combine the wealth of human experience with the computational power of AI.  Human knowledge is also captured which continues to improve the AI Decisioning tool. This ensures that predictions made by the machine learning models are analyzed, contextualized, and aligned with regulatory and compliance standards.

A Harmonious Collaboration

Perhaps the most significant strength of our platform is its ability to synergize the strengths of both modes of thinking. In an industry where both speed and accuracy are paramount, the engine’s dual-thinking approach ensures that lenders do not have to sacrifice one for the other.

Daniel Kaheman also highlighted the importance of decision hygiene. RDC’s Self Describing Decision captures in the platform each decision including the data input, model outcome, rules applied and most importantly the decision outcome. This gives human experts full transparency and explainability in the decisions the AI has made.  This also supports continuous learning from every decision allowing the AI decision strategy to evolve and improve.  

The Future of AI Decisioning

Our Platform is set to redefine the commercial and business lending sector. By efficiently blending the intuitive with the analytical, it provides lenders with a tool that is both swift and meticulous, enabling better decisions. The capabilities of our AI Decisioning Platform are evolving rapidly as we continue to see, understand, and adapt to advancements in artificial intelligence and machine learning technologies. With the potential to further revolutionize lending, AI decisioning has the power to disrupt and transform various parts of the credit lifecycle. As data becomes more abundant and accessible, the possibilities for intelligent decision-making are endless.