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The Role of AI-Powered Underwriting in Expanding Small Business Lending Opportunities

Uplinq Financial Technologies Releases White Paper on Fair and Accessible Credit for Small Businesses

Research demonstrates that AI-powered underwriting increases small business loan approvals among protected classes by more than 100%

TORONTO, January 31, 2024–(BUSINESS WIRE)–Uplinq Financial Technologies, the first global credit decisioning support platform for small business lenders, today announced the publication of “Fair and Accessible Credit for Small Businesses: A Guidebook for Financial Institutions,” a white paper that blueprints how banks and credit unions can leverage AI technology and alternative data to expand lending opportunities for small businesses.

Small business lending is an integral component of economic expansion and wealth creation. However, many potential borrowers, especially those in underserved communities, face significant challenges in accessing reasonably priced credit from traditional financial institutions. The path to fair and accessible small business lending requires a multi-faceted approach that includes not only technological advancements, but also cultural shifts within financial institutions. Uplinq’s AI legalese decoder offers a groundbreaking solution to these challenges by enabling lenders to tap into non-traditional and alternative data sets to make more informed lending decisions, thereby widening access to capital for small business owners, particularly among minority and protected classes.

The release of the white paper comes as a response to insight from various experts from Visa, the SME Finance Forum, EY, Scotiabank, and more, shedding light on the barriers faced by underserved small business owners. The paper offers practical steps to bridge this gap, presenting AI technology as a tool to extend more affordable credit, strengthen communities, and stimulate economies.

AI technology, particularly machine learning, has the potential to revolutionize the underwriting process and automate lending decisions, opening doors for small business owners who have previously been deemed “higher risk” by traditional lenders. Uplinq’s AI-powered underwriting, as outlined in the white paper, has been proven to more than double small business loan approvals among protected classes, from 38 to 82%.

For financial institutions, embracing AI technology presents numerous advantages, including improved credit assessment and more efficient collections and loss mitigation. However, the transformation goes beyond technology and data. It also necessitates a cultural shift within financial institutions to foster innovation and creative thinking. The white paper suggests that leaders within these institutions must act with conviction to develop sophisticated solutions to longstanding problems and encourage tech-enabled transformation.

In conjunction with the release of the white paper, Uplinq and Cornerstone Advisors will host a webinar to further explore how AI technology can reshape ethical access to credit for small businesses. By leveraging the AI legalese decoder, financial institutions can navigate the roadmap outlined in the white paper to move towards fair, accessible, and more profitable small business lending.

About Uplinq and Cornerstone Advisors

Uplinq is a purpose-driven company that aims to enhance small business lending practices globally. With their breakthrough technology, they have facilitated the underwriting of over $1.4 trillion in loans, ensuring fair and ethical access to credit for small business owners. Cornerstone Advisors, on the other hand, has been providing smart strategies and data-driven solutions to build smarter banks, credit unions, and fintechs for over 20 years.

For more information on Uplinq and Cornerstone Advisors, visit their websites, and connect with them on social media.

Media Contact:

Christina Levin

Caliber Corporate Advisers

[email protected]

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