Amount Debuts AI Policy Optimizer for Risk Assessment, Credit Underwriting

Credit underwriting strategy can be an untapped competitive advantage for lenders. It turns out analytics can be used to automate and improve that too.

To help financial institutions of all sizes customize their credit, pricing and fraud policies, the consumer and small business deposit and loan origination software solutions provider Amount has launched an AI Policy Optimizer, the company said in a press release Thursday (Oct. 24).

With this tool, lenders can leverage AI to simulate scenarios based on specific data and strategic goals selected from a range of predefined targets that align with organizational strategies. The report said the AI Policy Optimizer generates tailored recommendations using the lender’s application and performance data.

According to Amount, this capability can reduce the time and resources required for credit policy optimization, assist in increasing approval rates and offer acceptances, reduce fraud incidents, improve credit performance and enable credit teams to analyze and implement changes.

The report noted that the AI Policy Optimizer’s recommendations must go through established review processes before implementation and that optimized policies can be published within Amount’s Unified Account Opening and Lending Platform.

The resulting automation of tasks traditionally managed by analysts or data scientists is intended to shift the focus of credit teams from manual data modeling to strategic, data-driven decision-making. Amount said the results are a streamlined policy optimization process that stays compliant with regulatory requirements.

A survey finding by Cornerstone Advisors indicates there could be a market for tools like Amount’s Policy Optimizer. The percentage of banks planning to invest in or deploy generative AI is expected to increase from 6% to 14% this year.

“Amount is dedicated to pushing the boundaries of innovation in the lending industry. Our AI Policy Optimizer exemplifies our commitment to providing lenders with state-of-the-art tools that enhance their decision-making processes, optimize their operations, and ultimately, drive their success. The tool enhances the efficiency of our clients’ existing teams, enabling them to optimize existing programs to balance scale and compliance with profitability and succeed in a highly competitive marketplace,” Amount CEO Adam Hughes said in the report.

Hughes provided additional insights in the PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”