JUDI.AI shares advice with CreditUnions.com – An interview powered by Callahan and Associates.
Small and medium businesses (SMBs) play a huge role in keeping the economy alive – but most credit unions currently find themselves under indexed in small business lending. The economic instability caused by the pandemic has made doing business extraordinarily difficult for many SMBs, and for the community-minded financial institutions that want to provide these enterprises with working credit lifelines and personalized advice.
In this interview, Gord Baizley, CEO of JUDI.AI, explains how their small business lending analytics platform is used by credit unions to leverage real-time cash flow, AI and SMB-specific credit intelligence that helps their business members – and their loan portfolios – survive, grow and thrive.
How you can overcome the difficulties in credit scoring small businesses, such as:
Missed lending opportunities due to low SMB credit score hit rates, inflexible “one size fits all” commercial credit risk models, thin credit history, and stale financials
High risk for low margins and interest rates (50% of small businesses fail after five years)
Manual inefficiencies in loan application intake, underwriting, and annual reviews
Increased competition from big banks, alternative lenders, and big techs that are setting a higher standard for borrower convenience and responsiveness
Lack of real-time visibility into predictive risk and growth indicators
Lack of post-lending SMB cash flow insights to align product offerings, successfully grow SMB relationships, and acquire new ones
What to look for when it comes to SMB-specific credit science expertise, product onboarding/integration and training support
Where you can take your new PPP borrowers beyond the pandemic, and how cash flow data analysis and ongoing risk monitoring are helping credit unions to win their new members over by:
Deepening relationships and providing the business insights and advice SMBs need to grow their business
Accelerating the application intake and underwriting process for faster access to financing
Making it easier to apply for SMB loans across digital and in-branch channels
Why credit unions are choosing JUDI.AI for:
SMB-specific credit analysis and automated underwriting – Increasing the speed and approving 20% more SMB loans (without adding risk) through automation, machine learning, and alternative cash flow data analysis for increased scoring accuracy.
Continuous cash flow performance monitoring – Monitoring current SMB operating and financing cash flow positions to immediately flag high-risk growth and risk indicators, such as NSFs, missed payments, debt service coverage ratio, new line of credit payments, and negative account balance trends.
Loan portfolio reporting and post-lending growth analytics – Leveraging data insights and credit intelligence to deepen small business relationships and help credit unions prioritize risk and growth opportunities to reduce delinquent loans and accelerate loan portfolio growth.