You are currently viewing Could Chat GPT be a useful credit tool?

Could Chat GPT be a useful credit tool?

I’m sure many of you are part of the many millions that have played around with the Internet’s next big thing:
Chat GPT. For those who don’t know, Chat GPT (or “Generative Pre-trained Transformer”) is an advanced-AI chatbot that has been trained on an immense amount of data. It’s intuitive natural language processing means that it can do everything from write intricate computer code, compile essays on complex subjects and even write its own poetry. It is the future of Internet search.

So what does Chat GPT have to say about matters credit?

I submitted a few questions.

  1. How can Chat GPT help in credit management?


  • Risk Assessment: Chat GPT can analyze historical data and current trends to assess credit risk. By using advanced machine learning algorithms, Chat GPT can identify potential risk factors and make predictions about future creditworthiness.
  • Fraud Detection: Chat GPT can help detect fraudulent activities in credit management. By analyzing transactions and user behavior, Chat GPT can flag suspicious activities and alert the credit management team to take appropriate action.
  • Customer Service: Chat GPT can be integrated with chatbots and other customer service tools to provide a personalized experience for customers. It can help customers manage their credit accounts, answer common questions, and provide information on payment options and due dates.
  • Decision-making: Chat GPT can help credit managers make more informed decisions by analyzing data, identifying patterns, and making predictions. This can help managers make better decisions about lending, risk assessment, and other aspects of credit management.
  • Automated Processes: Chat GPT can help automate many of the routine tasks involved in credit management, such as reviewing credit reports, sending payment reminders, and handling disputes. This can help improve efficiency and reduce costs for credit management companies.

Some of these answers may be surprising to many of you. Of course Chat GPT allows you to dig further. I’ll explore these in a future blog.

  1. What is the future of credit scoring?


The future of credit scoring is likely to involve a greater use of technology and data analytics to make credit decisions more accurate and efficient. Here are a few trends that are likely to shape the future of credit scoring:

  • Alternative data sources: Traditional credit scoring models rely on a limited set of data points such as payment history and credit utilization. However, alternative data sources such as utility bills, rent payments, and social media activity are increasingly being used to supplement traditional credit data. By incorporating these additional data sources, lenders can gain a more comprehensive picture of a borrower’s creditworthiness and make more accurate credit decisions.
  • Machine learning and AI: Machine learning and artificial intelligence (AI) are already being used to improve credit scoring models. These technologies can identify patterns and relationships in data that may be missed by traditional credit scoring models, resulting in more accurate credit decisions. In addition, machine learning algorithms can continually learn and adapt to changing market conditions, helping lenders to stay ahead of the curve.
  • Mobile and digital banking: The rise of mobile and digital banking has made it easier for lenders to access data on borrowers and make credit decisions more quickly. This trend is likely to continue, as more borrowers opt for online and mobile banking services, leading to a shift away from traditional lending models that rely on physical branches and in-person interactions.
  • Personalized credit scores: Credit scores are currently based on a set of predetermined criteria, but in the future, credit scores may become more personalized, taking into account individual circumstances and behavior. For example, a borrower’s credit score could be adjusted based on factors such as their income, spending habits, and savings.

Overall, the future of credit scoring is likely to involve a greater use of technology and data analytics to improve credit decisions, making it easier for borrowers to access credit and lenders to manage risk. However, it’s important to ensure that these new credit scoring models are fair and transparent, and that they don’t unfairly discriminate against certain groups of borrowers.

I’m not as happy with that response albeit that I agree that alternative data, ML/AI, transactional scoring all feature in the current trends for credit scoring.


  1. Write a limerick about credit scoring.

A credit score is quite a big deal
It tells lenders just how you will feel
You need to pay on time
And keep your debts in line
To get a good score, it’s ideal!

I don’t think it is in contention for a Pullitzer, but you’ve still got to admire the creativeness!

If you haven’t, jump on to Chat-GPT and explore further. There’s a lot under the hood.