10-Q, Member Exclusive

How improving credit risk assessment can catalyze FIs’ growth: 3 questions with Visa’s Carl Rutstein

  • Financial institutions grapple with obstacles in navigating the technology and route for credit risk assessment and management.
  • Carl Rutstein, Visa's Global Head of Advisory Services, sheds light on the impact of data and AI on credit risk assessment and discusses the challenges faced by FIs in going down this route.
close

Email a Friend

How improving credit risk assessment can catalyze FIs’ growth: 3 questions with Visa’s Carl Rutstein

    Perfecting the skill of analyzing and aligning ‘ability to pay’ with ‘verification’.

    by SARA KHAIRI

    Amid a backdrop of mounting consumer payment defaults, more stringent regulatory frameworks, and heightened capital requirements particularly affecting major banking institutions, underwriting has experienced a notable contraction. 

    This shift has catalyzed a transition within the lending market, moving away from the traditional dominance of established financial institutions toward the emergence of non-bank entities competing for market share. 

    FIs are exploring beyond conventional underwriting metrics to improve decision-making processes and risk assessment with the help of artificial intelligence [AI] and big data to catalyze overall business growth. Just over half, 65% of FIs in the US use alternative credit data for 50%-100% of new applicants, with over half of them reporting revenue increases of more than 15%.

    Yet, financial institutions grapple with obstacles in navigating the technology and route for credit risk assessment and management, according to a new report by Visa. 

    I engaged in a conversation with Carl Rutstein, Visa’s Global Head of Advisory Services, about…


    subscription wall for TS Pro

    0 comments on “How improving credit risk assessment can catalyze FIs’ growth: 3 questions with Visa’s Carl Rutstein”

    10-Q, Member Exclusive

    Trump, Crypto, and Banks: A love triangle with trust issues

    • With the new president reshuffling the financial deck and rolling out the red carpet for crypto, banks are likely stuck in a corporate identity crisis.
    • Should they dive headfirst into the DeFi space or stick to the tried-and-true methods that have kept them at the top?
    Sara Khairi | February 10, 2025
    10-Q, Member Exclusive

    Is AI your new work buddy or your pink slip in disguise? WEF 2025 Davos has thoughts

    • This year at WEF Davos, AI was practically the event’s co-host, sharing the spotlight with American politics.
    • AI can be a force for good or bad, but instead of focusing solely on job loss, the finance industry can view it through a wider lens.
    Sara Khairi | February 03, 2025
    10-Q, Member Exclusive

    Inside the mind of Wise’s New Commercial Director for North America and her ambitious plans

    • Wise Platform has appointed Lauren Langbridge as its new Commercial Director for North America.
    • Lauren shares her career journey, vision for Wise, and transition to leading a public company in North America.
    Sara Khairi | January 27, 2025
    10-Q, Member Exclusive

    Big Banks, Big Bucks: After a mic-drop Q4 2024, what’s on the menu for Q1 2025?

    • Big banks made a splash last week with their strong Q4 2024 earnings.
    • To keep the earnings streak alive in Q1 2025, FIs might need to refine their strategies — here’s what they could focus on.
    Sara Khairi | January 20, 2025
    Banking, Green Finance, Member Exclusive, The Quarterly Review

    The Quarterly Review: Citizen’s Rachel Mattes Greenberg on how her team is sprinting to success in order to meet the bank’s $50 billion Sustainable Finance target

    • In April, Citizens' Head of Sustainability Rachel Mattes Greenberg, told me that she and her team were hard at work ensuring the bank meets its $50 billion in Sustainable Finance Target.
    • Her strategy involved launching two ESG reports and helping Citizens' bankers engage high-emitting clients in conversation about sustainability. Now she is here to report how these efforts panned out and where she is expecting to go next.
    Rabab Ahsan | January 14, 2025
    More Articles