Description

Artificial intelligence (AI) and big data are transforming the credit market in Vietnam. Lenders increasingly use algorithmic credit scoring to assess borrowers’ creditworthiness or their likelihood and willingness to repay a loan. This technology gleans non-traditional data from smartphones and analyses them through machine learning algorithms. Algorithmic credit scoring promises greater efficiency, accuracy, cost-effectiveness, and speed in predicting credit risk compared to traditional credit scoring systems that are based on economic data and human discretion. These technological gains are expected to foster financial inclusion, untap new credit markets, and deliver credit to ‘at-risk’ and financially excluded borrowers. However, this technology also raises public concern about opacity, unfair discrimination, and threats over individual autonomy and privacy. In Vietnam, the lending industry deploys this technology at scale, but in legal limbo. Regulation is vital to delivering big data and AI promises in the financial services market while ensuring fairness and public interest.

A working paper will lay the foundation for this webinar. It can be accessed here.

This webinar is part of the ISEAS Webinar Series 2020-2021 on Financial Transformation, Credit Markets and Household Debt in Southeast Asia.  More information about the series can be found here.