October 29, 2024 | 12:00am
MANILA, Philippines — Digital lender Maya Bank has achieved a remarkable milestone by disbursing an all-time high of P67 billion in loans as of September, boosted by artificial intelligence (AI)-driven credit assessments.
The record-high figure highlights Maya’s commitment to enhance credit access particularly for Filipinos who are often looked by traditional lenders.
“AI is transforming how we approach banking,” Maya Group chief technology officer Alfred Lo said in a statement. “It’s not just about making credit accessible – it’s allowing us to understand people’s financial behaviors better and therefore offer solutions that fit their lives.”
According to the bank, the AI-driven lending model uses AI in assessing creditworthiness based on users’ transaction history, app usage as well as minor transactions like bill payments or grocery purchases.
This instant assessment enables the bank to process up to 50,000 loan applications daily, with most borrowers receiving approval and funds within hours via its mobile app. The bank also employs predictive modeling to ensure that loans match individual risk profiles.
Maya’s AI model also emphasizes risk management, which is fundamental to its lending strategy. By consistently monitoring financial behaviors of customers, the platform targets borrowers who are more likely to repay. It dynamically adjusts credit limits to minimize the risk of default and ensure that borrowers can manage their debts responsibly.
With AI, Maya said it saw rapid loan growth with significantly lower default rates. By utilizing AI models that quickly adapt to changes in credit behavior, the bank slashes its default rates by over 50 percent compared to when it launched its lending services in 2022.
In addition to enhancing credit scoring, Maya’s AI technology is crucial for fraud detection. It protects the lending operations by identifying fraudulent loan applications and preventing unauthorized withdrawals.
“By blending advanced technology with a customer-focused approach, Maya is not only expanding access to credit but also setting new standards for banking in the Philippines,” the bank said.
This lending growth also led to Maya’s expansion into other financial products. The bank has partnered with retail giant Landers to launch a new credit card that utilizes AI to determine personalized credit limits and repayment plans.
Maya Bank is the digital banking arm of Voyager Innovations Inc. and is one of the six players in digital banking operating with a license from the Bangko Sentral ng Pilipinas.
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