Idea – The AI underwriter

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Welcome to the Tech Think Tank

This is repository for all my AI, technology and business ideas and thinking. Every day, I have many new ideas and opportunities and thought I would share them. Please read and send me your feedback either on new media, contact form or contact me if you want me to think how I can give you opportunities in your industry.

The concept – AI underwriter

Any loans, insurance or investment requires an element of underwriting. This is where the lender or investor researches and tries to assess the risk associated to the client. However, these institutions only measure the credit worthiness in the past and not in the future. What if you could have an AI underwriter that could give greater insights based on global variables.

The problem

Most lending is based on the creditworthiness. Most credit checking is with big companies like Dun and Bradstreet, ISO (Insurance Services Office) or the numerous credit agencies. However, may only be getting a small aspect of the risk that has happened in the past. This may be out of date or limit the possibilities of lending.

Some companies or individuals may have a poor credit history as they are cash/asset rich, but poor borrowers. Some companies have a very good credit history and could subvert the system to borrow more and then go under resulting in a huge loss of investment.

The solution

An AI underwriter could not only look at all the direct credit variables. But, what if they could gather as much information about trading history, reputation, market penetration, market risk factors and more about a company or individual within a legal and ethical framework. This information could give a fuller picture and weighted to importance. Ie what if a construction firm look for investment.

The new AI underwriting process
  • Credit history
  • Credit worthiness
  • Trading history
  • Company formations and history
  • Planning history
  • Supplier credibility
  • Customer satisfaction
  • News aggregation
  • Economic variables aggregation

Also, the AI underwriting could calculate or project risk over time which could mean that lending could be assessed dynamically and have staged payments.

The benefits

The benefits to the lender could be:

  • Opportunity to lend to good investment opportunities
  • Opportunity to reduce risk lending to hidden problems
  • Incremental lending based on evolutionary risk

The benefits to borrower could be:

  • Get investment
  • Speed of investment
  • Bigger borrowing in stages

Once developed the AI underwriting algorithm can be written so more variables can be added or refined. The services could be developed with an API back end access for a win win for both lenders and borrowers.


Why Tech Think Tank

The Tech Think Tank is an area for all my many tech and business ideas. I speak to many AI, data, technologist and leading experts around the world and new ideas popup along the way. Rather than sit on them, I thought I would share them with the world. Hopefully, it will spark new start-ups or new frontiers for others as well as demonstrate the thinking or investment I give all my clients.

Contact me

Please feel free to contact me if you would like advice and insights on AI and technology for your business or organisation.

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