Revolutionising loan approvals: How a leading Asian bank leveraged generative AI to transform customer due diligence
Empowering speed, precision, and growth in banking
In the world of modern banking, time is money, and precision is paramount. For one of Asia’s leading banks, serving millions through personal, business, and investment services, the loan approval process had become a bottleneck. Manual customer due diligence was riddled with delays and inaccuracies, impacting customer satisfaction and potentially costing valuable business opportunities.
The challenge: A manual, cumbersome process
The bank's manual process of evaluating borrowers' profiles for corporate loans involved analysing intricate financial statements and industry-specific risks. This labour-intensive approach was prone to human error, consumed significant resources, and delayed approvals, creating friction in customer relationships and hindering growth.
Resolving this challenge wasn’t just about improving efficiency—it was about safeguarding the bank's financial interests, reducing default risks, and delivering unparalleled service to customers.
The solution: Generative AI to the rescue
Enter Generative AI—a game-changing technology that redefined the loan evaluation process. By partnering with Deloitte, the bank implemented an AI-powered solution that accelerated due diligence, minimised manual effort, and delivered precise insights.
The Generative AI-based tool analysed borrower data and produced three critical reports with unparalleled accuracy:
- SWOT analysis report: Using advanced map-reduce summarisation techniques, the tool distilled annual reports into concise insights about a company’s strengths, weaknesses, opportunities, and threats.
- Company background report and market assessment report: Leveraging the Retrieval Augmented Generation (RAG) framework, the solution created detailed, structured outputs to populate comprehensive report templates.
- Enhanced data extraction: Custom table detection and extraction capabilities ensured precise and reliable inputs, boosting the quality of AI-generated responses.
The results: Speed, precision, and insights
The transformation was nothing short of remarkable:
- Over 90% accuracy: Errors were minimised, delivering dependable insights.
- Faster approvals: Borrower evaluations became streamlined, dramatically reducing lead time.
- Informed risk assessments: Comprehensive analysis illuminated market trends and potential risks, empowering smarter decision-making.
This solution didn’t just automate processes; it provided a holistic view of borrower profiles, enabling the bank to make confident, data-driven decisions while improving the overall customer experience.
Impacting the future of banking
This groundbreaking approach highlights the transformative potential of Generative AI in banking. By going beyond financial analysis to evaluate competitive positioning, market dynamics, and borrower risks, the bank unlocked new avenues for growth. With this solution in place, the bank is not only enhancing operational efficiency but also paving the way for smarter, faster, and more personalised lending—ultimately revolutionising the customer experience.
Generative AI isn’t just a tool—it’s a catalyst for growth, precision, and customer delight.
Christine Ahn
