AI in Loan Adjudication standard
A doctor diagnosing, a mechanic repairing equipment, an army general deciding to send his force to combat all use the same model of human information processing. Gather information, evaluate and analyze information, make a decision, execute the action and obtain feedback. Humans have limited attention and judge information using the knowledge stored in their long-term memory. In a loan application, the role of the loan adjudicator is to decide whether or not the loan application will be accepted. To achieve this objective, the adjudicator verifies and analyzes the information to ensure that the loan application meets the criteria and standards of the financial institution. These criteria are established over the years of banking practices. Risk managers from across the organization ...
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