Above: A flow chart illustrating the Corridor Platforms credit decisioning process. Corridor Platforms, a New York-based risk management software provider, today announced a machine learning-powered credit risk management platform for small and midsize banks, built in partnership with Clairvoyant.

It’ll launch this week in private beta. “Advancements in digital lending has been a disintermediating force for traditional banks,” Manish Gupta, founder and CEO of Corridor Platforms and a former American Express executive, said in a statement.

“For smaller banks, it’s been more difficult to overcome this disruption due to the lack of resources it takes to build platforms in-house that speed decision-making, maintain a disciplined approach to credit approvals, and take advantage of advanced big data analytics to manage risk.” Overcoming these challenges is easier said than done. Laws like the Equal Credit Opportunity Act require banks to prove that they’re not discriminating based on traits like gender or race, which the opacity of AI algorithms makes difficult.

But Gupta said that the digital lending system was designed with transparency in mind. “An important element of the continued shift to digital lending is the use of advanced data analytics and machine learning to automate, but also leverage, all available customer data to monitor risk and make decisions in real time,” he explained.

Corridor Platforms’ tools allow banks to compare strategies and “instantaneously” evaluate risk. Automated monitoring tracks credit decisions from prospecting to underwriting and alerts system administrators to changes in customers’ credit risks over time. Read more from venturebeat.com…

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