Credit in the age of Artificial Intelligence: how AI is transforming access to and analysis of risk in Brazil
74% of financial institutions report efficiency gains and cost reductions with AI, and 63% report advances in fraud prevention, according to Febraban study
Artificial intelligence is no longer a future promise - it is already shaping the present of the credit market in Brazil. Data from Febraban reveals that 74% of financial institutions report efficiency gains and cost reductions with AI, in addition to 63% claiming advances in fraud prevention.
According to Elias Sfeir, president of the National Association of Credit Bureaus (ANBC), AI is at the heart of a silent revolution, capable of democratizing access to credit, especially for small and medium-sized companies. “Automating credit analysis with AI reduces costs and makes it possible to cater for profiles that were previously off the radar of the formal financial system,” he says.
The credit bureau sector, which operates some of the largest databases in Latin America, has been using machine learning for over 20 years. Now, with generative and predictive artificial intelligence, it can update credit scores in real time, detect fraud more assertively and speed up the construction of statistical models, reducing the time taken from weeks to days.
The challenge, according to Sfeir, is to ensure that technological transformation advances in balance with regulation. “It's important for regulation to understand the boundaries of AI and differentiate sophisticated systems from conventional computational tools. It's a debate that requires dialog between the market, regulators and society,” warns Sfeir.
In addition to operational gains, AI plays a decisive role in financial inclusion. The G20 has already recognized that the high cost of traditional credit analysis limits financing for small businesses. AI, by automating processes and increasing predictive capacity, breaks down this barrier.
“The digital revolution was the internet. The cognitive revolution is AI. Perhaps the most appropriate name isn't even Artificial Intelligence, but Expanded Intelligence,” concludes Sfeir.
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