New Delhi, Aug. 13 -- As AI becomes embedded in digital lending, the industry's conversation is moving beyond whether models can process applications faster. The bigger concern is whether they can improve the quality of credit decisions without creating new risks around bias, explainability, fraud and accountability.

For lenders, that distinction matters. Faster underwriting has limited value if it simply allows the same risk assumptions to be applied at greater speed. The more significant shift is toward using behavioral and transactional signals to continuously reassess borrowers, while keeping humans accountable for decisions.

That is also changing the technology economics of lending. As thousands of credit decisions increasingly hap...