Today's top stories

Toyota turns to AI to speed credit decisioning

Toyota Financial Services’ Intelligent Financing Decision Engine leverages machine learning and massive data sets to accelerate credit decisioning and improve customer and dealer experience.

Toyota turns to AI to speed credit decisioning
SolarSeven / Getty Images

In the world of automotive financial services, both dealers and customers are looking for decision-making speed. To gain a competitive advantage, Toyota Financial Services (TFS) has turned to AI to help it increase automated credit decisioning, improve customer and dealer experience, and efficiently manage consumer credit risk, all while adhering to fair lending practices.

“Our goal is to provide best-in-class customer and dealer experiences,” says Bharadwaj Gopal, domain information officer at Toyota Financial Services. “This required improving our credit decision-making speed and higher automation while managing our credit risk and meeting compliance standards.”

Based on dealer and customer feedback, TFS started working on its Intelligent Financing Decision Engine (IFDE) in June 2019. IFDE is a cloud-native, scalable, loan origination decision engine for credit risk analysis in customer vehicle financing. The idea was to create a state-of-the-art AI decision model that utilized targeted premier credit attributes identified by TFS to craft algorithms capable of delivering sub-second results. The project has earned TFS a FutureEdge 50 Award for applications of emerging technologies.

Driving the process with cross-functional collaboration

TFS IT partnered with the company’s consumer credit risk business unit to articulate the business case for IFDE based on real data, Gopal says.

To continue reading this article register now

Download CIO's Roadmap Report: Data and analytics at scale