Credit loans generally represent the biggest source of risk for a bank.
However, it is also one of its main sources of revenue.
As a matter of fact, competent risk management in credit and lending is essential to the overall financial health of a banking institution.
|What Customers Want
Faster time-to-money (quicker approval process)
Decrease touch time (better user experience, digitisation)
|What Banks Want
Greater transparency to risk profiles (more targeted risk-based pricing)
Reduce cost of risk mitigation
Reduce operational costs
Banks are under pressure to adapt their business model:
A digitised risk function provides better monitoring and control and more effective regulatory compliance.
To date, no automated multimodal behaviour modelling has been used for financial risk management, more specifically for credit risk assessment.
In combination with manual credit screening methods, VIMA’s technology is ideally positioned to play an important role to help financial institutions make better and faster decisions.
An automatic, quick and scientifically-validated assessment unlocks faster time-to-decision and time-to-cash processes, leading to higher operational margins for businesses and a strong competitive advantage with respect to other industry players.
VIMA provides behavioural intelligence tools, which allow companies to improve the assessment of borrowers by predicting their willingness-to-pay based on their personalities. The evaluation is performed by analysing short video presentations of applicants using a combination of AI, computer vision, speech processing and social science. Accuracy reaches unprecedented levels and the process limits bias to a minimum.
This comes as a complementary solution to the traditional screening methods, which include credit score check (if available), loan size and duration, credit bureaus, etc.
Improve the speed of execution
Give rapid approval of credit, when possible. Whether transactional (online/offline) or a general consumer/merchant credit offering, speed is key in increasingly competitive markets.
Drive business volume and revenues through the acceptance of more high-value, low-default customers. With an accurate calibration on a scale of credit worthiness, you may be able to equally allow charging of differential interest rates
Replace expensive Know Your Customer (KYC) tools that currently establish the credit-worthiness of customers: mobile phone plans, credit scores, historical data, etc. It efficiently complements tools that are already in place.
Help calibrate credit-worthiness in credit portfolios. Calibrating credit-worthiness on a sliding scale rather than just providing a binary yes/no, could help lenders’ risk management team to react to financial goals as well as policy/other changes.
Research indicates that conscientiousness is strongly related to risk taking behaviour in finance.
This personality trait describes socially-prescribed impulse control and self-discipline that facilitate task- and goal directed behaviour: delaying immediate gratification, thinking before acting, following norms and rules, planning and organizing tasks.
In the context of financial credibility, these tendencies can impact on a person’s adherence to contractual loan conditions and making wise money investments.
Some of VIMA’s detected soft skills also relate to professional competence (commitment at work, determination to achieve success) and can be used to predict financial risk-related behaviours.
Traditional credit lending
Upon underwriting a credit (consumer credit, credit card, leasing), “hard” solvability criteria are assessed by lenders: salary, credit score, invoice payment history, social-demographic parameters comparison, purpose of credit, etc.
However, oftentimes, this background check is not sufficient to guarantee that borrowers will pay back in time or even pay back at all. By evaluating their personalities, bank clerks can better judge whether someone will pay back in time or if someone is prone to defaulting.
Peer-to-Peer (P2P) Lending:
be an actor of the online decentralised economy
P2P Lending works as follows: an individual borrower can be matched with a (or multiple) corresponding investor, who is interested in lending to the individual, with an agreed-upon interest rate and duration.
Upon assessing the risk associated with each applicant requesting a loan, VIMA’s solution can be used to determine the level of risk associated with each application. By measuring how high the conscientiousness and professional skills of persons are, it gives an additional layer of information to lenders whether some will tend to pay back or default.
Other alleys of implementation
Another important use case for VIMA could be asset (money) recovery with delinquent customers/past-due borrowers.
Improvement of customer journey and bank-client interaction
The future of consumer interaction notably goes through voice-enabled systems (e.g. e-banking activation via ALEXA, ECHO, etc.).
Go/No-Go credit lending decision
Know Your Customer KYC
VIMA stands for accuracy and scientific validation. For this reason, it provides customers with a specific proof of concept to perform an objective experiment using data from their company.
It is an objective and transparent test in the form of a blind validation:
1. Videos of past borrowers
1.1 Your company provides VIMA with videos of past borrowers, alongside with the information of whom has been granted a loan or not.
1.2 You keep on your side a sample of video recordings, not sharing it with VIMA.
2. Training of a tailored recommendation system
Based on this data (1.1), VIMA provides a tailored recommendation system.
The videos that were kept aside (1.2) are tested by the recommendation system that outputs recommendation scores for each video of individual borrowers.
4. Verification of results
You can now objectively see if the recommendation score fits with the reality, as you already know which credit applicant has received a loan. A high score suggests that borrowers have received money; a low score suggests that applicants did not receive any money or that borrowers are considered as “bad payers” (late payers, defaulting, etc.).
VIMA’s product is compatible with any major customer relation management CRM system that is linked to credit applications. VIMA will provide personalised IT support to help you set up the system with your IT team.
Benefit from the latest advancements from our research group in social computing and behavioural psychology. We are relentlessly advancing the accuracy of our AI systems to provide with the latest innovations in the field of behavioural intelligence.
VIMA is a spin-off of the Idiap Research Institute, a world-class AI centre affiliated with the Swiss Federal Institute of Technology EPFL. The company leverages over ten years of research in social computing, behavioural psychology, computer vision and speech processing.
The research has been partially funded by the Swiss Agency for Innovation Innosuisse and has been scientifically validated in high impact journals for years. Moreover, it has attracted worldwide attention by being referenced in Harvard Business Review.
Vima has been selected by the IMD Business School for its outstanding technology.
The company is ideally positioned to become the future leader in providing behavioural intelligence tools that will be key to unlock unheard of opportunities in next-generation human-machine interactions.
Business Development Manager
Direct +41 27 720 55 22
Vima Link SA
Idiap Research Institute
Rue Marconi 19
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