The Limitations of Traditional Methods
Traditional affordability checks are often based on rigid credit scores and historical data that fail to capture an individual’s or business’s current financial situation. As noted in a 2023 McKinsey report, AI-driven underwriting can reduce operational costs by up to 50% while improving risk prediction accuracy. This highlights the growing demand for smarter, data-driven solutions that go beyond the limitations of conventional methods.
How AI Enhances Affordability Assessments
AI harnesses smart data, machine learning, and advanced predictive analytics to build dynamic, comprehensive profiles of applicants. By examining not only income patterns and spending habits but also broader economic factors, AI models uncover insights that traditional systems overlook. For example, freelancers or those with fluctuating incomes can be assessed based on cash flow trends rather than relying on rigid salary benchmarks, ensuring a more accurate picture of financial health.
Platforms like Planky leverage these technologies to convert raw transaction data into valuable insights. The result is faster, more accurate approvals, reduced defaults, and greater operational efficiency—all while maintaining user privacy.
The Business Impact
For businesses, AI-driven affordability assessments offer a competitive edge. With faster and more accurate evaluations, financial institutions can reduce risk exposure and streamline decision-making. AI’s ability to process complex datasets quickly enables organizations to respond to customer needs in real-time, enhancing operational efficiency and customer satisfaction.
The Future of Financial Decision-Making
As the financial landscape continues to evolve, AI will only become more integral to affordability assessments. By integrating AI with an expanding range of data sources, institutions can expect more precise and efficient decision-making, driving better outcomes for both businesses and their customers.
At Planky, our platform is designed to support organizations in navigating this shift. By transforming financial data into actionable intelligence, we’re empowering businesses to make smarter, more informed decisions—one insight at a time.
