The Challenge

The banking sector, especially in the business banking domain, encounters considerable hurdles when it comes to assessing credit risks. Traditional methods are demanding both in terms of resources and time, leading to increased operational costs. Furthermore, manual evaluations are prone to errors, compromising the quality of decision-making. This, in turn, causes delays in credit approval processes, negatively affecting client businesses and their satisfaction with the bank's services.

GenAI enabled Risk Assessment

To overcome these challenges, we developed a GenAI Solution, leveraging different open source models to streamline and enhance the credit risk assessment process. One core element of the solution is a fine-tuned extracting service that structures multiple non-structured inputs. Exemplary inputs are annual reports, income statements and business plans. We developed multiple different AI agents to analyze this data, calculating key financial indicators and evaluating business model dynamics. This automation facilitates the creation of customizable credit risk summaries, enabling analysts to adjust AI-generated reports to meet the unique needs of each case.

Projected Impact

The project aims to transform the approach to credit risk assessment in business banking. We anticipate a significant reduction, by 60-70%, in the time required to evaluate credit risks. Moreover, the efficiency brought by our AI support is expected to enhance employee productivity by 15-20%. These improvements are not just about speeding up processes; they're about making them smarter, more accurate, and more beneficial for both the bank and its clients.

Implementation

Over the course of 8 weeks we identified the use case, defined the business & technical requirements and conducted interviews with potential users of the solution. We started with a Proof of Concept (PoC), dedicating 6 weeks to develop and test the AI to ensure it meets the bank's specific needs. This was followed by a 7-month period of full application development, during which we created a comprehensive solution that incorporated all the necessary features. To ensure smooth adoption, we are supporting the team during roll-out, coaching & change management.

In Conclusion

The business banking sector is at a pivotal point of transformation. By leveraging AI, we are supporting our clients to address the immediate challenges of credit risk assessment and laying the groundwork for future innovations. We are dedicated to providing technology that makes a real difference, aiming to make operations more efficient and improve how customers experience our services.