In addition to credit underwriting, FinRegLab’s comment letter highlights three AI use cases with particularly important financial inclusion implications: (1) delivery of financial advice and coaching; (2) identity verification, fraud detection, and anti-money laundering activities; and (3) back-office applications to increase the nimbleness of model and product development.

A new report by FinRegLab underscores the importance of continuing technology and data improvements to expand credit access among smaller, younger businesses. From Crisis to Opportunity: Financing for Underserved Small Businesses since COVID-19 analyzes recent lending trends, including initiatives focusing on underserved businesses, lender technology adoption, and the effect of high inflation and interest rates on both loan demand and supply. 

This report delves into the evolving landscape of small business lending following the pandemic, identifying significant trends that are shaping the lending ecosystem. As the economy improves, lenders will face critical decisions about how to meet the capital needs of more small businesses, including record numbers of minority- and women-owned startups since 2020.

FinRegLab is launching a ground-breaking comparison of the financial inclusion benefits of using machine learning underwriting models with and without cash-flow data to increase responsible access to credit for consumers who may otherwise find it difficult to obtain safe and affordable loans.