Mbanq, a leading provider of banking technology, has partnered with SMEApprove, a specialist in Credit Decisioning-as-a-Service (CDaaS), to bolster credit decisioning capabilities for its clients in the SME lending space.
This collaboration aims to revolutionise the speed, accuracy, and efficiency of SME credit evaluations by seamlessly integrating SMEApprove's cutting-edge artificial intelligence (AI) technology into Mbanq's client platforms.
Lars Rottweiler, Mbanq's Chief Technology Officer, explained the strategic significance of the partnership: "SMEApprove's AI-driven credit decisioning platform will integrate directly into our offerings, enabling Mbanq clients to significantly improve their credit decisioning processes for small and medium-sized businesses."
Bryan Carroll, Chairman of SMEApprove, highlighted the mutual benefits of the collaboration: "By incorporating our industry-leading credit decisioning platform into Mbanq's offerings, we empower their lending platforms to make faster and more precise credit decisions for SMEs. This streamlining will benefit lenders by optimising their operations and also provide SME customers with quicker access to the capital they require for growth."
SMEApprove's AI and machine learning technology stands out for its ability to deliver increased accuracy in credit decisions, thereby mitigating the risk of defaults. The platform streamlines the credit decisioning process, enabling lenders to process loan applications with greater speed. It seamlessly integrates with existing credit decisioning systems, leveraging modern AI capabilities to their fullest. A comprehensive library of credit risk predictors and preconfigured features makes it easier for lending teams to significantly enhance existing algorithms for lending product underwriting.
Importantly, the AI-enabled platform adheres to lending regulations, ensuring compliance and fairness throughout the credit decisioning process. Rottweiler emphasised the importance of explainability: "A vital aspect of our choice of SMEApprove's technology is its high levels of explainability. This allows Mbanq's compliance team to understand, supervise, and trust automated decisions, mitigating concerns about compliance and potential unfair lending practices."
By integrating a variety of data sources, the platform empowers lenders to assess risk rapidly and accurately, facilitating informed decision-making. This ability to extend credit to a wider range of SMEs also expands lenders' market reach.
In conclusion, this partnership between Mbanq and SMEApprove represents a significant step forward in the evolution of credit decisioning for SMEs. By leveraging the power of AI, lenders can enhance their processes, reduce risk, and ultimately provide better access to finance for businesses seeking growth and development.
This article was originally published by Retail Banker International, a GlobalData owned brand.