Introducing Loan Predictor 1.0: Revolutionising Business Lending with Machine Learning

June 28, 2023

Recent advances in artificial intelligence (AI) have shown impressive benefits that can be achieved through the effective use of AI tools.

Given the vast amount of data involved in the world of business lending, AI seems to be predestined to play a central role in improving response times to credit applications and decision expectations by small and medium-sized enterprises (SMEs). Recognising this potential, CG24 Group is proud to introduce Loan Predictor 1.0 (LP1), a cutting-edge machine learning tool designed to provide SMEs with real-time indications of their loan likelihood. Already in its first version LP1 improves response time, decision expectations, and empowers potential borrowers.

No more waiting around for a response

At the heart of LP1 lies the idea of providing companies with an indication of loan possibilities. By leveraging the power of machine learning, CG24 has developed a tool that enhances the loan application process, streamlining the decision-making journey for both lenders and borrowers. With LP1 SMEs can avoid uncertain and anxious waiting periods and gain quick insights into their loan likelihood, enabling them to make informed decisions and plan their financial future more effectively.

Is using the tool complicated?

Using LP1 is simple and user-friendly. To get started, users need to fill out a minimal amount of company data, verify their email address and provide an estimate of what a required loan may look like. LP1 combines this information with additional external credit information, adding more accuracy to the prediction process and utilising a sophisticated algorithm generates a probability of receiving a loan that can be classified into three possible outcomes: high, medium, and low probability of receiving a loan. These outcomes are determined using probability quartiles, ensuring a comprehensive assessment of loan likelihood. The whole process typically takes just a few seconds.

How does it actually work?

LP1 is the result of extensive efforts of the CG24 data analytics team. Leveraging the power of machine learning, the team employed a random forest algorithm to achieve accurate predictions with a minimal number of features. The training process involved a combination of internal and external data, ensuring a robust and reliable model. By continuously testing, refining, and improving the tool, CG24’s goal is to transform LP1 into a comprehensive decision-making tool, minimising any time consuming review steps by credit officers and empowering businesses to make independent and informed choices.

While LP1 is currently focused on business credit applications, CG24’s vision extends to other financial products, such as personal and consumer loans (Private Credit), offering a comprehensive suite of predictive tools to support a wide range of borrowing needs. By integrating advanced machine learning techniques, leveraging the power of data and making the results available to our customers, CG24 aims to revolutionise the lending industry, making it more accessible, efficient, and transparent.

LP1 represents a significant leap forward in loan likelihood assessment. By providing SMEs with real-time indications, CG24 empowers them to navigate the complexity of financing with more confidence and clarity. This first step in transforming the way businesses apply for loans and manage their finances by improving response time and decision expectations provides valuable insights for businesses and fills a crucial need in the market. We are excited about the future development of Loan Predictor 1.0 and its potential to revolutionise decision-making in the lending industry.

Should you have any questions or require further information, our team is ready to assist you.