University Of Missouri Study Shows AI Could Help Get Better Loans For Rural Residents

Artificial intelligence could be a game changer for small businesses struggling to secure loans.

That’s according to a new study from the University of Missouri which indicates, since the 2008 Great Recession, more than 13,000 bank branches have closed across the country…many in rural areas.

Jeffery Piao, an assistant professor in M-U’s College of Business, says A-I could help banks identify and support creditworthy borrowers, even from afar, which in turn would open new doors for economic growth on the local level.

Figures show the percentage of banks using A-I increased from 14% in 2017 to 43% in 2019, banks with greater A-I use lent money with lower interest rates to borrowers located farther away.