SME lending is crucial for financial entities including banks and fintech companies since it contributes with a health margin of profit and fees, diversifies the portfolio, helps with additional customer acquisition of linked individuals and supports economic growth of the overall country. Their share in the country’s GDP is not yet reflected to their share in the financing. There is a clear opportunity for lenders, and as with every opportunity, there are challenges ahead. Challenges are centered around limited financial information to assess riskiness, historically higher default rates compared to other corporate segments, lack of collateral, cost of due diligence and human effort heavy sales process.
SAS has recently invested into enhancing its credit decisioning system to break down these barriers using generative AI and OCR capabilities. It automates manual processes while providing digital assistant to reduce dependency on human effort. We will be discussing how these items would help attendees in this regard.