June 21st, 2019

Underwrite.ai Transforms Credit Risk Decision-Making Using AI

RSS icon RSS Category: Customer, Data Science, Financial Services, H2O Driverless AI, Machine Learning Interpretability

Determining credit has been done by traditional techniques for decades. The challenge with traditional credit underwriting is that it doesn’t take into account all of the various aspects or features of an individual’s credit ability.  Underwrite.ai, a new credit startup, saw this as an opportunity to apply machine learning and AI to improve credit lending decisions. The company considers many more factors to construct a credit profile, which will help a lender make a decision that can be much more accurate.

By using H2O Driverless AI, an automatic machine learning platform, they were able to achieve better results than traditional credit scoring techniques. Here’s how – Driverless AI took in a large amount of data, determined relationships and patterns, and constructed a predictive model that considered approximately 763 different features. From Driverless AI, the company was able to automatically build the Adverse Action Report that lenders need in order to make a financial decision and do that within nanoseconds. Not only was this predictive model accurate, it was faster in making a decision too.

Marc Stein, underwrite.ai’s Founder and CEO emphasizes that “Not only can we reach a decision, we can also explain the decision and be fully compliant with the regulations. And it takes less than half a millisecond”. The platform provides the user with many visualizations and graphs to understand and explain the results. Because machine learning develops a non-linear model, it can be confusing to truly grasp the meaning derived from the data. With Driverless AI machine learning interpretability capability, feature interactions are not only understandable but explained.

How much better was the new credit risk model than traditional techniques? Well, the model had an accuracy of .95813, which according to the Marc Stein was ground-breaking: “This is the first time I’ve ever had a model at .95,” Marc Stein adds. After implementing Driverless AI, underwrite.ai has surpassed their target of producing a decision for a client in 20 milliseconds to producing a decision in half a millisecond.

“Using thousands of data points instead of the handful used by traditional credit scoring services, underwrite.ai generates a much more reliable lending risk profile for creditors to use when evaluating a credit or loan application,” explains Marc Stein. “By using Driverless AI to build and deploy our nonlinear models, we can provide lenders a fully automated process that delivers a highly reliable credit decision with a fully compliant explanation for the decision in less than half a millisecond. H2O and Driverless AI play an integral role in our platform, speeding up the development and deployment of models exponentially.”

Big thanks to AI and automatic machine learning for transforming our long-standing credit system.

About the Author

Priya Jain

Priya is a Marketing Intern at H2O.ai. She is pursuing a Bachelor's degree in Cognitive Science and Economics from Rutgers University. In her free time, Priya likes to play table tennis, listen to music, write poems, and play the flute.

Leave a Reply

Amazon Redshift Integration for H2O.ai Model Scoring

We consistently work with our partners on innovative ways to use models in production here

November 22, 2021 - by Eric Gudgion
Building Resilient Supply Chains with AI

A global pandemic, a fundamental shift in the demand for goods and services worldwide, and

November 11, 2021 - by Adam Murphy
Introducing the H2O.ai Wildfire Challenge

We are excited to announce our first AI competition for good - H2O.ai Wildfire Challenge. We’ve

November 5, 2021 - by
MLB Player Digital Engagement Forecasting

Are you a baseball fan? If so, you may notice that things are heating up

October 29, 2021 - by Jo-Fai Chow
Announcing the H2O AI Feature Store

We’re really excited to announce the H2O AI Feature Store - The only intelligent feature

October 28, 2021 - by Vinod Iyengar
An Introduction to Time Series Modeling:
Time Series Preprocessing and Feature Engineering

Time is the only nonrenewable resource - Sri Ambati, Founder and CEO, H2O.ai. Prediction is very

October 26, 2021 - by Adam Murphy

Start your 14-day free trial today