New Delhi, Aug. 18 -- For years, lending has largely been built around a one-time decision: assess a borrower, approve or reject the application, and determine the terms. AI is beginning to change that model by allowing lenders to continuously assess borrower behaviour, identify early signs of financial stress and adjust credit exposure over time.

The transition could be particularly significant for NBFCs serving new-to-credit and thin-file borrowers, where traditional credit histories often provide limited information. But greater use of behavioural data also brings questions around bias, accountability and responsible AI.

In conversation with CIOL, Debarya Dutta, Chief AI Officer, True Balance, discusses how behavioural signals can co...