Scott Brown presents at Reuters Next
“If I were to look into a crystal ball, traditional lending methodology and processes will not be replaced; they will be augmented by consumers connecting to banks via APIs, contributing the data they are comfortable with, and banks using that in conjunction with historical credit data to offer newer and better products they didn’t have access to before. The convergence of data, tech and AI leads to more financial inclusion and a more modern way of underwriting.”
Scott Brown, Group President Financial Services, Experian North America
Scott Brown, Group President of Financial Services for Experian North America, recently presented at Reuters Next discussing the transformative power of AI and data analytics in financial services. The session also covered the top challenges that financial institutions face today and how advances in technology are helping organizations overcome those challenges.
This keynote presentation was a timely follow-up to Brown’s previous appearance at the Money20/20 conference in Las Vegas, where he revealed the details of Experian’s latest innovation in GenAI technology, Experian Assistant.
Brown, in a conversation with TV writer, producer and anchor Del Irani, spoke about the ethical considerations of AI innovation, what the future of underwriting may look like, and how open banking can drive financial inclusion and have a significant positive impact on both businesses and consumers.
“If you are extending a line of credit to a given consumer, how do you do so in a way that’s integrated into their everyday lives? That’s where the concept of embedded finance comes in, and howto embed finance into a consumer’s life, and not the other way around.”
Scott Brown, Group President Financial Services, Experian North America
By embedding finance into consumers’ lives, and not the other way around, organizations can develop better strategies to balance risk and generate more revenue.
He also focused on three foundational steps to take advantage of the capabilities AI offers: data quality, transparency, and responsibility.
Areas of focus for implementing AI
As organizations rely on more sophisticated approaches, data quality inputs are more important than ever. Inaccurate data can lead to poor business decisions that can have a negative impact on organizations’ bottom line.
Transparency is also a crucial component of implementing AI solutions. Companies should be able to explain how their models work and why the end results make sense while avoiding biases.
Leveraging data with AI tools allows organizations to get a better view of the consumer, which is a goal of most banks and lending institutions. Using that consumer data responsibly is important for financial institutions to establish and maintain trust with the people who use their services.
While incorporating AI solutions into everyday business operations is important for financial institutions to better serve their consumers and remain competitive in the industry, a lack of access to AI tools can prevent some organizations from doing so.
A fragmented approach leads to higher costs, lower efficiency, and greater risk
Until recently, financial institutions have had to rely on several different technology providers and tools to optimize customer experience and operational efficiency while protecting consumers from the risk of identity theft and fraud. This fragmented approach can result in increased costs for organizations and higher risk for consumers.
Now, AI technology is solving this issue by integrating functionality into a single platform, such as the Experian Ascend Technology Platform™. This streamlined access to a comprehensive suite of tools can help accelerate time-to-value while also eliminating compliance risks.
Full interview available now
Brown’s full interview at Reuters Next reveals more details about how Experian is empowering organizations to better serve their consumers’ financial needs through AI innovation while also helping more than 100 million Americans who don’t have access to the mainstream credit ecosystem due to being credit invisible, unscoreable, or have a low credit score. Watch the full interview to learn more about how Experian is continuing to bring financial power to all through innovative technology.
