True Balance has integrated artificial intelligence into its loan-application workflow, while retaining human review for certain cases to balance efficiency with risk controls. The approach aims to better evaluate borrowers with limited credit histories.
The lender supplements traditional credit scores with alternative data, including FASTag activity, to build fuller borrower profiles. This data helps in assessing creditworthiness beyond what standard credit bureaus provide.
Since implementing the AI-driven assessment, True Balance reports higher loan approval rates and a significant decline in defaults.
The development matters for lenders seeking to extend credit to borrowers with thin credit histories, for investors assessing risk, and for regulators overseeing data use and credit risk management. The combination of AI-driven assessment with human review and the use of alternative data could influence how credit risk is evaluated and how access to credit is expanded while maintaining controls.
