AI Tested for Loan Assessment by Rakuten Bank in Upcoming Trial
Rakuten Bank, a leading Japanese internet-based bank, is leveraging artificial intelligence (AI) to revolutionize its customer service and loan application processes. The bank is currently testing AI for screening some credit card loan applications and planning to introduce the technology on a trial basis for housing and real estate-backed loan applications [1].
The AI technology, however, is not yet being used for proposing financial products and asset management options or responding to customer inquiries by voice. Rakuten Bank President Tomotaka Torin has expressed high hopes for the potential of AI, emphasizing that its key to successful implementation lies in how quickly it can be grown and utilized [2].
The broader Rakuten Group employs an agentic AI platform, Rakuten AI, which integrates various services—including fintech and banking—into a unified AI-powered interface. This AI system learns user preferences to offer recommendations and support decision-making, improving service continuity and customer satisfaction [3].
Potential benefits of AI use by Rakuten Bank include faster and more accurate loan screening, enhanced customer interaction, cost efficiency, and improved personalization. AI can quickly assess loan applications based on data-driven credit scoring models, potentially expanding loan eligibility while reducing risks of non-payment [4]. AI-powered voice consultations and chat systems enable responsive, personalized communication, overcoming the lack of physical branches and providing "proactive dialogue" to propose financial products and asset management options [2].
By leveraging large datasets from millions of customers, Rakuten AI tailors recommendations and service offerings to individual needs, leading to better financial guidance and customer satisfaction across the fintech ecosystem [3][4]. Rakuten’s use of smaller, efficient AI models also reduces operational costs by up to 40%, enabling more scalable, affordable customer service and loan management operations [3].
Regulations on banks' AI use have yet to be determined. If regulations are favourable, Rakuten Bank plans to expand the use of AI for housing and real estate-backed loan applications, marking a significant step towards a more AI-driven future for the banking sector.
References:
- Rakuten Bank AI for Loan Screening and Customer Service
- Rakuten Bank AI Initiatives: A New Era for Internet-Only Banking
- Rakuten's Agentic AI Platform: A Game-Changer for Fintech and Banking
- The Impact of AI on Loan Screening and Customer Service at Rakuten Bank
- Rakuten Bank's AI-Driven Approach to Personalized Financial Guidance
The AI technology, currently being trialed for loan screening at Rakuten Bank, could potentially be utilized for proposing financial products and asset management options, following the efficient integration of Rakuten AI across various services. If viable and favorable regulations are in place, the bank may expand AI usage in housing and real estate-backed loan applications, further integrating AI into the banking sector.
With growing adoption of AI, photo-realistic models might replicate human behavior in AI-powered voice consultations and chat systems, creating personalized, responsive dialogues that target individual financial needs for improved customer satisfaction.
