Discover partnership to create AI credit scoring system
RIVERWOODS -- Discover Financial Services announced it will partner with ZestFinance to create one of the largest AI-based credit scoring solutions in the financial services industry.
Discover will be using the Zest Automated Machine Learning platform to improve credit underwriting by taking advantage of interpretable machine learning approaches to make more accurate lending decisions. In a successful trial, Discover and Zest found that the inclusion of more data and artificial intelligence techniques reduced default rates significantly without added portfolio risk.
Los Angeles-based ZestFinance develops software tools that enable clients to increase revenues, reduce risk, and ensure compliance. The company was founded in 2009 by former Google CIO Douglas Merrill.
The companies expect to put their first model into production later this year.