United StatesFinance and insurance2022 – ongoingGolden 1 Credit Union
Customized AI credit scorecard for consumer lending
Golden 1 reported 28% more approvals for protected borrower classes after introducing AI credit scoring
Problem
Golden 1 believed traditional credit scores were causing it to reject creditworthy Californians. Its CEO said national scoring models did not adequately reflect its membership.
Approach
The credit union worked with Zest AI to build a customized credit scorecard. It used member data and data from other Californians with similar characteristics. Golden 1 launched it for credit cards in December 2022, then extended it to unsecured and auto loans in 2023.
Results
Takeaway
The reported increase concerned access to credit. Golden 1 did not disclose corresponding default rates.
Categories
- Industry
- Finance and insurance
- Business function
- Finance, risk and legal
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Partner co-development
- Evidence
- Company's own claim
Sources
Source summaries
Banking Dive reported CEO Donna Bland's account of the scorecard's rollout. She attributed a 28% increase in approvals to protected borrower classes to its use.
Full details are in the original sources.