AI seen boosting Philippine bank lending

MANILA, Philippines — Loan growth in the Philippines could further rise in the coming years, with the broader adoption of artificial intelligence (AI) expected to help lenders tackle bottlenecks in the lending process and manage credit risks, according to global financial technology firm Intellect Design Arena.

Brajesh Khandelwal, an executive vice president at Intellect, said annual credit growth in the Philippines could accelerate to between 15 and 18 percent as early as next year—up from the current pace of about 12 percent—if banks move quickly to integrate AI-enabled tools into their lending operations and broader workflows.

He noted that AI can streamline know-your-customer procedures by reviewing loan applications and supporting documents, flagging errors and anomalies and helping loan officers more clearly distinguish reliable borrowers from risky ones.

Such improvements, he said, could help lenders temper the risk of defaults, especially in borrower segments with strong growth potential but are underserved due to a high perception of credit risks.

“The market, as a whole, might take some time [to adopt AI],” Khandelwal told reporters on Thursday. “But the banks who adopt the AI-based lending practices would be able to command the growth.”

Source: https://business.inquirer.net/560483/ai-seen-boosting-ph-bank-lending