NH Nonghyup Bank announced on the 24th that it will introduce an artificial intelligence (AI)-based credit supervision system to detect potential insolvency in advance and respond proactively.
This system is the first in the financial sector to adopt a machine learning-based early warning model. The supervision algorithm derived from data analyzing past supervision reports in full is applied to the ‘AI Supervisor,’ which automatically selects high-quality borrowers. For high-risk borrowers, it predicts the risk of insolvency in advance and provides indicators necessary for risk management.
Nonghyup Bank expects to improve the efficiency of credit supervision tasks through automation of the supervision process and strengthen internal control over overall loan handling by establishing a system-based monitoring framework.
Yang Jaeyoung, Vice President of the Risk Management Division at Nonghyup Bank, said, “This system was established to respond to concerns about increasing insolvency due to intensified internal and external uncertainties,” adding, “We will continue to enhance the system to proactively strengthen risk management.”
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