What’s happening is more and more software and app developers are utilizing algorithms that can use big data to deal with financial numbers and go through business and personal profiles to get information. What this means is that funders like Vader Mountain Capital can start looking at other factors in a business’s environment and different data that they may not have considered when reviewing applications. Plus machine learning can be much more precise when crunching numbers, and it may even take note of errors in records and credit card statements that human agents may not have known were errors. The hope of different financing tech developers is that more businesses that may have otherwise been denied will now be accepted.
There are still bugs in machine learning for finance that have to be worked out. As always, when gathering big data and analyzing different applicants based on their behavioral patterns, user privacy is always at the forefront. But still, the possibilities opened up by AI and machine learning can be tremendous for financial institutions and their business clients.
Machine learning is even beneficial for the small business owners themselves. Machine learning can assist in credit card processing by detecting fraud. On-the-fly or dynamic pricing is another product of machine learning that allows pricing to adjust to the user based on their online behavior. And lastly chatbots, the most popular form of machine learning, empowers small businesses to provide constant customer service on their websites.
Machine learning is a helpful tool for both small business financing and improving the small business itself. Vader Mountain Capital prides itself on working with small businesses to provide fast financing services suited to their needs. Learn more today!