Synthesis tries out vetting by AI
Capitec bank has said in the past it would consider adopting some of the online lender’s credit-scoring tools
Capital Appreciation’s fintech software division, Synthesis, is piloting an artificial intelligence-powered credit-scoring system that scans applicants’ social media profiles and other data. In an effort to make credit scoring more accurate, some lenders in other markets are already using this technology, including Capitec’s European associate, Creamfinance. Capitec has said in the past it would consider adopting some of the online lender’s credit-scoring tools. Synthesis’s research and development unit began piloting the software with a local financial institution about five months ago, Synthesis MD Michael Shapiro told Business Day. "It’s early days, they’ve done a soft launch and are moving towards a bigger launch." Shapiro said the AI credit-scoring system used traditional credit bureau data as well as applicants’ social media and other online activity. "We also use other information that’s provided from different sources, and then the machine learning determines the credit risk...