PNC's solution to rising AI costs: build its own AI

PNC Bank is shifting its strategy away from third-party tech providers to build its own internal 'AI factory.' For retailers and operators who offer financing through major banks, this signals a major shift in how lenders will manage credit decisions and customer interactions. By building its own infrastructure, PNC aims to avoid the rising costs and 'gatekeeping' of big tech firms. This means the tools used to approve your customers for financing are becoming more proprietary and specialized to the banking industry. For your business, this could eventually lead to faster innovations in point-of-sale approvals and more personalized financing offers for your customers. When lenders own their tech stack, they have more control over the data used to make lending decisions. This can result in more nuanced credit models that may approve customers who were previously declined by rigid, outsourced algorithms. It also suggests that the cost of providing these financial products may stay lower in the long run because the bank isn't paying 'tech taxes' to outside software companies. Expect to see other major lenders follow suit, moving away from generic AI tools toward custom-built systems designed specifically to streamline the consumer borrowing experience.

Source: American Banker — Top News

← Return to the library· Submit a correction