Crowd2Fund reduces default rate using AI

Artificial Intelligence (AI) has helped peer-to-peer platform Crowd2Fund improve its loan recovery rate, according to newly-released figures.

Crowd2Fund has seen its default rate drop from 1.42 per cent in June to just 1.04 per cent in July after implementing the AI software from Australian fintech firm InDebted.

“It is an amazing piece of technology and completely revolutionises debt recovery,” said Chris Hancock, chief executive of Crowd2Fund. “There is always a great need to competently manage all loans on our platform to ensure that businesses are upholding their obligations to the investors.

“This software has allowed us to improve our already stringent recoveries process, and we have seen more timely repayments and reduced defaults as a direct result.”

InDebted uses big data analysis and algorithms to forecast which loans may become delinquent. With already-delinquent loans, it will work out the likelihood is that the loan will be recovered.

Crowd2Fund then applies this technology to synchronise business data on its platform, which then sends time-sensitive triggers to businesses that are in arrears to prompt them to make payments.

“It’s a machine-learning tool that uses big data to allow recovery teams to target the loans that are most likely to recover,” said Hancock. “It also has a very sophisticated system that uses multiple digital channels. Its uses WhatsApp, social media, and cookie dropping to remind borrowers about their outstanding loans.”

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Source: Crowd2Fund reduces default rate using AI | Peer2Peer Finance News