AI to make access to SME credit easier says Carney
Artificial intelligence will make it easier for small and medium-sized businesses to access credit, according to Bank of England Governor Mark Carney.
Speaking at the Innovate London summit yesterday, Carney said that “more sustainable and inclusive growth” in banking services will be achieved through the application of financial technology.
In particular, developments in fintech will open up access to credit for small firms, especially those with “increasingly intangible” assets.
According to Carney, new entrants to the SME banking market are “opening up new opportunities for more competitive, platform-based finance.”
He continued: “AI-enabled solutions are increasingly important in fraud detection, as well as automated threat intelligence and prevention. There is also significant potential in credit assessments, wholesale loan underwriting and trading.”
London has become a global centre for the fintech revolution. UK-headquartered fintech businesses attracted more investment during 2018 than their counterparts in the United States or China.
The capital is home to leading fintech players such as Monzo and Starling Bank. Earlier this year the sector was buoyed by the takeover of payment processing giant Worldpay by a US competitor, a deal that valued the British company at £32 billion.