Scalable Infrastructure for AI-Driven Credit Scoring in Microfinance
Author(s): Sai Kalyani Rachapalli
Publication #: 2505033
Date of Publication: 07.07.2024
Country: USA
Pages: 1-9
Published In: Volume 10 Issue 4 July-2024
DOI: https://doi.org/10.5281/zenodo.15564464
Abstract
The introduction of artificial intelligence (AI) has transformed the credit scoring approach of the financial services sector. Microfinance institutions (MFIs) that operate for underbanked and underserved individuals will have a huge amount to gain through AI-based credit scoring systems. But such a system's application requires scalable infrastructure that can efficiently process large-scale, real-time data with precision and reliability. This study explores the needs, design, and deployment of scalable infrastructure for AI-based credit scoring in microfinance. We explore cloud solutions, distributed computing, data lake architecture, and container orchestration platforms as scalability enablers. The methodology is a hybrid AI model with supervised and unsupervised learning techniques experimented across multiple infrastructure configurations. Findings reveal a positive correlation between infrastructure scalability and the performance of AI models, such that strong infrastructure has a marked improvement in credit scoring accuracy and operational efficiency. Our results highlight the importance of infrastructure in unlocking the full value of AI in microfinance and offer actionable recommendations for policymakers, developers, and microfinance institutions interested in embracing AI technologies. In addition, this research emphasizes the socio-economic footprint of scaling AI deployment, as enhanced credit scoring has a direct relation to enhanced access to credit, lower default rates, and greater financial inclusion. The findings point to the fact that investment in strong infrastructure is not just a technology consideration but a strategic necessity for furthering development agendas. By tackling both the technology and operational views, this paper presents an end-to-end framework to grasp how scalable infrastructure can reshape microfinance with AI.
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