Fintech firm ZestFinance has entered into a strategic collaboration with tech giant Microsoft to accelerate enterprise adoption of machine learning in financial services industry.
As per the agreement, ZestFinance will deploy its machine learning (ML) software tools on Microsoft Azure and Machine Learning Server platforms.
The banks now can use Zest’s ZAML suite of tools to develop, implement and monitor ML credit models on Microsoft platforms.
ZestFinance founder and CEO Douglas Merrill said: “Microsoft has built amazing ML services for the enterprise that enable IT organisations to manage and scale their infrastructure easily to meet diverse business needs.
“With Zest explainability, businesses can start using Microsoft’s ML platforms more broadly for high-stakes use cases that demand transparency and auditability.”
The ML credit models are expected to enable the financial institutions to offer credit at a lower cost to their customers.
Also, it helps to expand credit base of the companies by using more data and better analytics to identify worthy borrowers compared to conventional models.
Deployment of ML credit models to reach out to prospective customers and re-assessing credit risks is expected to increase approval rates by 15% or cut credit losses by 30%, the company said.
Microsoft president of US Regulated Industries Toni Townes-Whitley said: “Microsoft supports ZestFinance’s ambition to help the financial services industry make better borrowing decisions and equitably help grow our communities.
“With solutions powered by Microsoft technology, the future of AI and the growth of financial services can be much more inclusive, underscored by Microsoft’s investments in security, privacy, and regulatory compliance.”