AI in lending: Breaking myths and re-establishing trust

By Rajat Deshpande, Co-Founder & CEO of FinBox

What if a single technology could inject billions of dollars into the global banking industry annually? Well, that’s not hypothetical. The McKinsey Global Institute predicts generative AI will add between $200 billion to $340 billion to the total industry revenue each year. This just reaffirms that AI is bound to fundamentally reshape how we lend, save, and manage money.

Despite all its brilliance, this technology isn’t a magic wand free from limitations or concerns. As with any transformative innovation, AI comes with its fair share of scepticism and misconceptions.

Trust is the ultimate currency in finance, so it’s crucial to separate fact from fiction. Before we progress to the next phase of AI-led lending, let’s pull back the curtain on some common myths surrounding AI’s role in the industry.

Myth #1: AI is only ...