How Lendsqr’s AI Agent empowers lenders: A case study

Somewhere around the world, a lender is wide awake, staring at a screen filled with spreadsheets and loan applications, eyes glazed over. Another glitch in the loan application process has popped up, customers are already frustrated, and his support team won’t be online for another five hours. This lender isn’t alone. In fact, a recent study by the International Finance Corporation (IFC) found that over 40% of small and medium financial institutions globally cite “operational inefficiencies” as a primary barrier to growth. It’s the invisible weight that every lender, big or small, carries around.

But what if there was a way to make this pain vanish overnight?

Earlier this year, Lendsqr set out to test how well a generative AI could support its internal teams. Using OpenAI’s custom GPT, they created a Lendian GPT specifically for their Product Support team, and it worked like a charm. This success prompted Lendsqr to think bigger. What if AI could do more than just answer support questions? What if it could simplify the entire lending process, making life easier for lenders and enhancing customer experiences?

The result? A vision for integrating AI agents into the lender’s admin console — a move that could redefine how lenders within the Lendsqr ecosystem operate.

To better understand how best an AI agent will be most useful to lenders in the Lendsqr Ecosystem, we’ll answer the following questions in this article;

• What are AI agents?
• What are the types of AI agents?
• Which of these types of AI agents will be best suited for Lendsqr use case?
• What are the possible advantages our lenders will gain using these AI agents?
• What are the possible problems that could arise from using these AI agents?

What are AI agents?

To get a clearer picture of what Lendsqr is building, let’s start with the basics. What exactly is an AI agent? Think of it as a super-intelligent assistant capable of completing tasks on its own. Unlike traditional software, an AI agent doesn’t just follow rules. It observes, learns, and decides. It can sense its environment, understand complex data, and act on its own to achieve specific goals. In other words, it’s a digital co-worker that gets smarter over time.

An effective AI agent should have a few standout qualities that really set it apart. First off, it should be autonomous. It can make decisions on its own and get things done without constant supervision. Then there’s adaptability — it should learn from every interaction and keep getting better with each use, becoming more efficient over time. It should also be great at problem-solving, analyzing tricky situations, predicting what might happen, and figuring out the best solution quickly. Plus, it should demonstrate strong tool usage skills, tapping into different resources like databases or real-time data to handle tasks accurately and keep things running smoothly.

Featured read: How to use Lendsqr’s APIs to power your loan app

What are the types of AI agents?

Not all AI agents are cut from the same cloth. In fact, there’s a variety of them, each designed to tackle specific tasks and scenarios. It’s like assembling a superhero team, where each member has a unique power tailored to solving a particular problem. Let’s break down some of the most common types you might come across and see what makes each one special.

First up, we have Conversational Agents. These are your go-to AI buddies for engaging users through natural language conversations. Think of them like super-smart chatbots. But unlike the basic bots that can only spit out pre-programmed responses, these conversational agents can hold dynamic conversations. They understand your questions, provide real-time guidance, and even clarify complex queries. For example, if you’re a lender struggling to configure a new product attribute, a conversational agent can step in and offer step-by-step assistance — making it feel like a knowledgeable colleague is always on hand to help.

Next are Task-Oriented Agents, the real workhorses of the AI world. These agents shine when it comes to automating repetitive, mundane tasks. Imagine a digital assistant that handles all the boring stuff like data entry, document verification, or even setting up a new loan product—so you don’t have to. With a task-oriented agent, lenders can focus on the bigger picture while the AI fills out every form perfectly, verifies every document, and ensures that every process flows smoothly. It’s like having a super-efficient digital assistant who never tires or makes mistakes.

Then, there’s the Autonomous Agent, which takes things to the next level. Unlike task-oriented agents that need specific instructions, autonomous agents are like a manager who knows how to run the entire show. They’re capable of managing complex workflows, handling everything from start to finish. For instance, in a lending scenario, if a borrower reaches out about a payment issue, the autonomous agent can track the borrower’s transaction history, verify the payment, resolve the issue, or escalate it with all the relevant data prepared—without needing any human input. This is particularly useful when speed and accuracy are critical.

Now, let’s talk about Risk Assessment Agents. These are like the cautious planners in the AI family, always thinking two steps ahead. They specialize in evaluating potential risks using vast amounts of data. Picture a lender deciding whether to approve a loan application. A risk assessment agent can crunch the numbers, analyze borrower histories, spot potential red flags, and provide a detailed report that helps lenders make more informed decisions. It’s almost like having your own risk expert, but one that works 24/7, never sleeps, and always provides data-driven advice.

On the lookout for shady dealings? That’s where Fraud detection agents come into play. They’re like watchdogs, always sniffing around for suspicious activities. These agents monitor transactions and identify anything out of the ordinary. Imagine a borrower suddenly making a series of high-value deposits out of nowhere. This kind of anomaly would instantly catch the attention of a fraud detection agent. It would flag the activity, send alerts, and help the lender investigate before any damage is done. Essentially, it’s like having an AI detective on your team, constantly protecting your business from potential fraud.

Finally, we have the Decision-Making Agents. The AI that can look at a wealth of information and draw actionable insights. They don’t just tell you what’s happening; they help you decide what to do next. Let’s say a lender wants to retain their most loyal customers. The decision-making agent can analyze customer payment histories, identify the most reliable borrowers, and recommend targeted loyalty programs or personalized offers. It’s like having a business consultant who’s always ready to provide smart, strategic advice based on the latest data.

In short, each type of AI agent brings something unique to the table. Whether it’s chatting with users, handling repetitive tasks, managing complex workflows, assessing risks, spotting fraud, or making decisions, these AI agents can transform the way businesses operate. And when combined, they create a powerful, multi-layered system that can tackle just about any challenge you throw at them.

Featured read: How we are using AI and ChatGPT to transform our internal support

Which of these types of AI agents will be best suited for Lendsqr use case?

Given the complexities of lending, it’s clear that one type of AI agent simply won’t cut it for lenders using Lendsqr. Instead, a multi-agent system, where different types of AI agents collaborate to handle various tasks is the ideal solution. This way, each agent can leverage its strengths to support different aspects of the lending process, creating a more robust and efficient ecosystem for lenders. Let’s break down how each type of AI agent can play its part and work together to create a more refined experience.

First up, we have Conversational Agents. Imagine being a lender trying to configure a new loan product but getting stuck somewhere in the middle. Instead of sifting through lengthy manuals or waiting for support, you can simply ask the Data, our Conversational AI Agent, and she guides you step-by-step through the process. It’s like having an expert sitting next to you, providing instant support, cutting down on time, and drastically reducing the chances of errors. This makes tasks that would have taken hours to complete, possible in just a few minutes.

Next are Task-Oriented Agents, perfect for automating repetitive and time-consuming activities. Let’s say you’re setting up multiple loan products, each with its own configurations and compliance rules. The task-oriented agent jumps in, automating data entry and ensuring that every product meets the internal guidelines. This not only lightens the workload but also maintains consistency and accuracy across the board. Lenders can focus on strategy rather than getting bogged down by mundane details.

Now, let’s talk about Autonomous Agents. Picture a scenario where a borrower reaches out, frustrated because a recent payment isn’t reflecting in their account. Instead of manually searching through transaction histories, the autonomous agent does the legwork. It checks the borrower’s details, identifies where the issue lies, and either resolves it or forwards a well-documented case to the Dara, complete with all relevant information. This reduces resolution time and ensures that human agents only get involved when absolutely necessary, freeing them to handle more complex issues.

When it comes to strategic planning, Risk Assessment Agents are a lender’s best friend. Imagine having an agent that, at the end of each month, compiles a detailed report on your loan portfolio, highlighting which loans are performing well, identifying defaulters, calculating overall profitability, and even predicting future trends. This kind of insight enables lenders to tweak their lending strategies, minimize risks, and maximize returns without needing to comb through countless spreadsheets manually.

Similarly, Fraud Detection Agents are invaluable for safeguarding the business. If a borrower suddenly deposits a significantly larger amount than expected, the fraud detection agent flags it immediately for review. This proactive approach catches and investigates potential fraud before it spirals into a bigger issue. Lenders can then respond swiftly, enhancing the security of the platform and maintaining trust with their clients.

Finally, we have Decision-making agents, which are all about helping lenders make the best strategic moves. Suppose you’re looking to reward your most loyal customers. The decision-making agent can analyze payment histories, borrower behavior, and overall creditworthiness to suggest which customers deserve special perks or exclusive offers. This ensures that you’re not only retaining your best clients but also creating personalized experiences that set you apart from the competition.

With these resources combined, lenders will be able to manage risks, identify possible fraud, automate repetitive activities, make educated judgments, communicate with borrowers more efficiently, and ultimately increase overall productivity and customer happiness.

What are the possible advantages our lenders will gain using these AI agents?

So, what’s in it for lenders? Quite a lot, actually! With AI agents, lenders can automate routine tasks, making it easier to create products and speeding up loan approvals. This means less time spent on manual processes and more time to focus on serving their clients. Plus, AI agents help improve accuracy and risk management by analyzing data and flagging potential issues early on. This allows lenders to tackle risks before they become significant problems.

Another advantage is the ability to provide 24/7 support. Lenders can resolve customer inquiries at any time, even outside office hours, helping ensure customers feel heard and valued. Additionally, by automating repetitive tasks, AI reduces the need for extensive human resources, leading to savings on operational costs.

As businesses grow, AI agents can handle increased workloads without the need to hire extra staff, allowing lenders to expand their operations more smoothly. In short, integrating AI offers lenders several benefits that enhance efficiency and help them navigate a competitive market.

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What are the possible problems that could arise from using these AI agents?

Implementing AI agents, as promising as it sounds, is far from being a simple endeavor. There are several challenges that Lendsqr must navigate to ensure a smooth integration. First, implementation challenges pose a significant hurdle. Convincing lenders to adopt new technology is no small feat. It’s not just a matter of flipping a switch; there’s a steep learning curve that requires patience and persistence. Lenders will need time to adjust to these changes, and the training process must be thorough to ensure everyone is confident in using the new tools.

Next, data privacy and security become critical concerns. With great power comes great responsibility, especially when handling sensitive customer information. AI agents will have access to a vast amount of personal data, making it crucial for Lendsqr to implement robust security measures. Protecting this data is not just a technical necessity; it demonstrates our commitment to customers that we keep their information safe and respected. The stakes are high, and any lapses could lead to severe consequences.

Another key challenge lies in bias and ethical considerations. AI agents are only as good as the data they are trained on. If the information used is flawed or biased, it can produce skewed results, leading to unfair decisions that impact real lives. Lendsqr must carefully vet the data that powers these agents, ensuring it upholds fairness and equity, or risk perpetuating systemic biases that could harm vulnerable groups.

Finally, regulatory compliance is a moving target that requires constant attention. AI regulations are continuously evolving, and staying ahead of these changes is imperative. Lenders must ensure they meet all compliance standards to avoid substantial penalties. This isn’t just about avoiding fines; it’s about building trust with customers and maintaining a positive relationship with regulators.

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The daunting road ahead

Think about it, imagine having a digital assistant that’s always on, handling all the tedious tasks that usually take up your time, giving you insightful reports, and even making smart suggestions to improve your loan business. That’s exactly what Lendsqr is aiming to achieve with these AI agents. It’s not just about making things faster, it’s about making lenders’ lives easier and more productive.

Of course, like anything new, there’s a learning curve. Getting used to AI handling sensitive customer data can feel intimidating at first, and it will take time to ensure everything runs smoothly. There’s also the challenge of keeping these AI agents fair, transparent, and compliant with regulations. But let’s be honest, every big innovation comes with a few bumps in the road.

What’s exciting is that once these hurdles are cleared, Lendsqr’s AI agents can accomplish much more than simply saving time and money. They can empower lenders to make better decisions, stay ahead of the competition, and ultimately focus on what really matters: serving their customers and growing their business. If Lendsqr gets this right, we’re looking at a new era of lending, one where AI doesn’t replace the human touch but enhances it, making the lending process smarter, smoother, and more effective for everyone involved. Book a free demo to learn more.