Fintech Kueski uses AI for an end-to-end loan solution

Contxto – Many people when requesting a loan for the first time, have no prior credit history. So what usually happens is they’re rejected by traditional banking agents. This is one pain point Mexican startup Kueski seeks to relieve via artificial intelligence (AI).

Related article: Mexican startup Kueski raises Series B in equity and debt combo

AI-powered credit assessments

Kueski is a fintech that provides micro-credits for anyone who needs equity on the spot. 

And it’s developed machine learning tech to make the loaning process more efficient in three different, but equally, important ways. 

First off, the fintech can carry out risk assessments under cases in which a person lacks credit history, credit cards, and debit cards—but they do have shopping habits.

Second, their algorithm can analyze the data that’s been gathered on a customer in order to offer him or her a personalized loan.

And last, but not least, it uses AI for fraud prevention by identifying unusual patterns from someone requesting a loan. In order to do so, Kueski uses various sources of information. Among which are the data a user submits directly onto the startup’s platform and info gathered from businesses.

Future applications?

While Kueski focuses on individuals and micro-credits, AI and loans can prove to be dynamite at a larger-scale for consumers. For example in mortgage lending, especially when the borrower is a first-time homeowner.

Moreover, as regulations get tighter, AI may also come in handy for big and small businesses in compliance procedures.

In any case, traditional banks, not wanting to be outpaced by these fintechs, will increasingly deploy machine learning.

The question will be who can achieve a better customer experience with AI.

The fintechs, like Kueski and Brazilian Rebel, who were the first to see the utility in this tech and deploy it? Or the big banks who’ve got the pocket change to buy their way into the innovation game?

Let me know what you think!

Related articles: Tech and startups in Mexico!

-ML