Valley Bank exec: AI is changing build-versus-buy question

This news highlights a major shift in how lenders manage the technology that powers your customer financing programs. Valley Bank is leveraging Artificial Intelligence to move away from rigid, expensive third-party software vendors in favor of building custom internal tools. For retailers, this represents a broader trend: lenders are becoming faster and more agile. When lenders build their own AI-driven platforms instead of 'buying' off-the-shelf software, they can approve loans faster and offer more personalized financing terms for your customers. The bank is currently prioritizing 'relationship-building' use cases. This means the technology is being designed to help loan officers and credit analysts understand applicant data more deeply than a standard credit score allows. For your business, this could eventually lead to higher approval rates for 'gray area' customers who might have been declined by older, automated systems. By controlling the AI costs through tiered employee access, lenders are ensuring that these technological upgrades don't lead to increased fees for merchants or higher interest rates for consumers. Expect the lenders you partner with to start pitching 'proprietary AI' as a reason to stick with their platform over traditional legacy providers.

Source: Banking Dive

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