New Delhi, April 24 -- Traditionally, credit decisions were made using fixed rules. Lenders checked income, credit score, and repayment history, and if a borrower met the criteria, the loan was approved else rejected. This process works, but it leaves many people out and often misses important details about real financial behaviour. Today, artificial intelligence is changing this process. Instead of relying solely on records, lenders can now understand how people manage their finances in real life.

This change in the underwriting process from rule-based evaluation to behaviour-based prediction is the primary use case for artificial intelligence. AI-led underwriting models can study patterns in bank transactions, spending habits, and cash...