Credit Analysis
Banks often use expert systems to help them decide on the creditworthiness of potential customers, both companies and individuals. The speed with which the bank can respond to requests is much faster if it uses an expert system, rather than relying on human advisers to make the necessary calculations and judgements. It has also led to a marked reduction in the number of bad debts which have had to be written off.
Experts are presented with requests from companies for loans. The facts they request and the rules that they apply in deciding on such requests are added to the expert system's knowledge base. In addition, the balance sheets (the records of income and expenditure) of all the companies who have requested loans in the past are added. For companies, users have to respond to questions asking about the sector the company works in and detailed balance sheet information, as well as the more technical details of how they manage their accounts. Requests for loans or credit cards from individuals are dealt with by an expert system asking questions relating to how much the individual earns, what their outgoings are and other loans and credit cards they might have already. As with all expert systems, only recommendations are made. They do not take over the decision process. That is left to the user, taking into account the expert systems' suggestions.
Experts are presented with requests from companies for loans. The facts they request and the rules that they apply in deciding on such requests are added to the expert system's knowledge base. In addition, the balance sheets (the records of income and expenditure) of all the companies who have requested loans in the past are added. For companies, users have to respond to questions asking about the sector the company works in and detailed balance sheet information, as well as the more technical details of how they manage their accounts. Requests for loans or credit cards from individuals are dealt with by an expert system asking questions relating to how much the individual earns, what their outgoings are and other loans and credit cards they might have already. As with all expert systems, only recommendations are made. They do not take over the decision process. That is left to the user, taking into account the expert systems' suggestions.