Financial institutions use artificial intelligence (AI) and machine learning (ML) models to reshape debt recovery. Although you probably haven’t noticed any changes yet — these technologies are already having a massive impact on the finance industry.
Debt grows out of control as people’s priorities shift, interest rates hit historic highs, and the cost of living rises. For instance, outstanding credit card debt reached over $1 trillion in the United States in 2023. Although it’s an unfortunate milestone, it reveals a systematic issue.
Now more than ever, loans are becoming delinquent. About 28% of American consumers have at least one debt in collections, and over one in four people can’t afford to repay what they borrow. You should be able to recognize the dilemma financial institutions are facing. Realistically, they can no longer afford to stay idle.
You might find it challenging to believe AI and ML models could reshape the financial industry. Some people thought the same thing about the internet. Many creditors are already adopting these technologies, so it’s only a matter of time before they permanently transform ordinary debt recovery processes.READ THE FULL ARTICLE HERE >>
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