Credit risk, data and AI: managing spiralling demands and delivering value

Amid the Ukraine situation, oil prices and inflation, and worsening climate issues, there is more demand than ever to produce forward-looking data to make business decisions, or to satisfy regulators. Our latest credit risk survey shows banks continue to struggle with this process. However, they’re also keen to explore and apply advanced technology, such as machine learning and AI, to help them handle broad swathes of data points. But to what extent will technology change the nature of fundamental analysis? While it can provide efficiency gains when applied to repetitive manual work, will broader application lead to more opacity to an industry striving for greater transparency?