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Online bank harnessing artificial intelligence to reduce credit risk

Branch International, the pioneer exclusively online bank (Neobank) in Kenya, says it leverages Artificial Intelligence (AI) technology to minimize credit risk.

The announcement was made during a workshop that was held at the Sarova Stanley Hotel on Monday.

Branch International Founder & CEO Mr. Matt Flannery said that the Neobank’s utilization of AI algorithms has propelled it to the forefront of credit risk management, ensuring reliable and responsible lending practices.

“Our banks utilization of AI algorithms has pushed it to the forefront of credit risk management. This has ensured reliable and responsible lending practices to our clients,” Flannery reiterated.

Mr. Flannery also noted that by harnessing the power of AI, Branch International is able to offer personalized loan products and minimize risk exposure. This, in turn, results to enhanced financial inclusion and economic growth.

East Africa Branch International Managing Director Ms. Rose Muturi, said that being the first Neobank in Kenya, they continue to transform the banking landscape through their innovative use of AI technology. This has helped to implement a risk-based lending model that allows the technology to effectively meet the credit needs of all its customers.

“By reducing credit risk with AI algorithms, Branch International ensures responsible lending practices that benefit both individuals and the broader economy,” said Ms. Muturi.

In addition to Branch’s core lending services, it has unveiled two new features aimed at empowering customers further. Their current Flexi and Target savings products allow customers to enjoy competitive rates. Clients get 9% Per Annum (PA) for Flexi and 15% PA for Target, on their deposits.

Ms. Muturi noted that the Neobank recognizes the importance of savings as a vital component of financial stability. As a result, they came up with the versatile savings solution that allows customers to set aside funds at their own pace.

With the competitive interest rates, the above mentioned customers can enjoy the benefits of saving while simultaneously accessing funds whenever necessary, providing them with the financial flexibility they require to open a Flexi savings account.

“All you need to do is fund your account from your Branch wallet. Once your Branch wallet is funded, tap the ‘Savings’ option, select Flexi savings and enter the amount you want to save, complete your savings, and start enjoying an interest of 9% PA for Flexi and 15% PA for Target,” Ms. Muturi explained.

Further revealing that Branch has introduced a new payment option, Pay to Till, within their app. This feature enables customers to make seamless payments to merchants by scanning QR codes at their respective tills. This allows users the convenience of making payments directly from their Branch International app, eliminating the need for physical cash transactions. To keep enjoying the benefits of the app, Muturi stated, it’s important to always upgrade to the latest version.

Branch is a for profit socially conscious company that uses the power of data science to reduce the cost of delivering financial services in emerging markets.

 By Enrica Amisi

 

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