NAB partners with credit risk AI specialist

National Australia Bank (NAB) has signed an agreement with artificial intelligence (AI) specialist Rich Data Corporation to use its AI prediction and decisioning capability software Delta.

Under the agreement, NAB would use Delta’s credit risk management capability, which links traditional and alternative data sources to provide prediction and credit decisions, for its SME customers with little or no credit history or who might fall outside traditional credit bureau criteria.

The capability will also use analytics and monitoring tools to identify portfolio risks and opportunities to support businesses that experience major change from events like the coronavirus pandemic.

Commenting on the partnership with Rich Data Corporation, NAB executive innovation and partnerships Howard Silby said: Their Delta platform will enable us to innovate and accelerate our lending options, leveraging alternative data and AI techniques and providing a means to assess SMEs who fall outside traditional credit models.

“We remain committed to finding new ways to serve and meet the needs of our small-business customers, as we pioneered with our NAB QuickBiz offering in 2016 and several innovations since.”

Speaking about the agreement, Rich Data Corporation’s co-founder and CEO Ada Guan said: “The COVID-19 pandemic has had a significant impact on small businesses and its ability to access responsible credit. It has highlighted the critical role that real-time data and AI can play in understanding the financial challenges these businesses are facing and determining the credit models that suit their needs and are easier to service.

“We’re honoured that NAB has chosen our technology and expertise to interpret SME behaviour and broader economic drivers to empower small businesses and bankers alike. This agreement aligns well with our company mission to improve financial inclusion.”

NAB’s deployment of Delta is scheduled for early 2021.

[Related: ANZ invests in SME data analytics fintech]

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.