Lending, coding, manual work: Citi Ventures places AI bets

Citi Ventures is doubling down on AI investments that specifically target the lending lifecycle. For retailers and operators, this signals a major shift in how consumer credit will be approved and managed in the near future. The banking giant is focusing on AI tools that can automate the 'manual heavy' parts of lending, such as verifying applicant data and assessing risk. This means the speed of credit decisions is poised to increase significantly, reducing the friction customers feel at the point of sale. Beyond just speed, these AI bets are aimed at improving the accuracy of credit models. For merchants, this could translate to higher approval rates without necessarily increasing default risk, as AI can identify creditworthy customers that traditional scoring methods might miss. Citi is also looking at how generative AI can handle customer service and administrative tasks. If these technologies scale, retailers can expect more seamless integrations with their financing partners and potentially lower backend costs for managing financing programs. The move indicates that the 'instant' in instant financing is about to become more reliable and widespread across all retail verticals.

Source: American Banker — Top News

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