Consumer lending is undergoing a major shift as artificial intelligence becomes embedded in pricing and personalisation strategies. Earnix, a leading provider of AI-powered analytics tools, is playing a key role in helping banks optimise their lending portfolios and better serve diverse customer segments.
As interest rates hold steady at 15-year highs and living costs continue to rise, consumers expect fair, personalised lending options. Whether seeking personal loans, credit cards, or auto finance, borrowers are now more selective and price-sensitive than ever.
AI-powered pricing platforms like those developed by Earnix allow banks to assess risk and tailor pricing based on real-time market data, customer behaviour, and competitive factors. These models can be tested and adjusted dynamically, ensuring offers remain relevant and balanced for both the customer and the bank.
By aligning pricing with individual borrower profiles, lenders can improve acceptance rates and create long-term value. For consumers, this means access to better-suited products; for banks, a stronger foundation for profitability and retention.
Personalisation opens the door to underserved segments
AI is also unlocking lending opportunities for customers who might otherwise be excluded. By analysing wider and more granular data, AI-driven platforms allow lenders to develop personalised offers for individuals with thin credit files or low scores.
Traditional loan systems often lack the flexibility to assess such borrowers accurately. Earnix’s solutions enable dynamic segmentation and pricing in real time—even as customer circumstances evolve.
The results are tangible. A UK bank using this approach reported a 300% increase in mobile loan sales. Similarly, a European lender achieved a 9% rise in unsecured lending volumes within a year.
Meeting evolving compliance demands
Globally, financial regulators are demanding more fairness and transparency. In the UK, the FCA’s Consumer Duty standard is reshaping how firms assess and communicate product value. In the US, ECOA and other fair lending laws require that credit decisions are unbiased and inclusive.
AI helps lenders align with these requirements by making pricing decisions more consistent, transparent, and explainable. With tools like those from Earnix, banks can demonstrate that pricing reflects fair value, tailored to each customer’s financial situation.
Early benefits, long-term value
As AI becomes more embedded in banking infrastructure, early adopters are seeing improvements in pricing performance, regulatory compliance, and customer trust. With providers like Earnix pushing innovation forward, AI is set to play a pivotal role in the future of consumer lending.
Read the full blog from Earnix here.
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