Artificial intelligence (AI) platform aims to give lenders improved efficiency, expanded financial product offerings

by | Oct 27, 2022 | Technology

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When a small- or midsized business (SMB)  approaches its bank with a request for credit, there is only a 20% chance that it’s qualified for full financing. Many of these businesses then turn to private lenders and merchant cash advance (MCA) providers, borrowing at potentially double-digit annual percentage rates (APRs). 

On the lender side, fintech players are also challenged in providing credit for their customers. These firms currently need to build their own models, processes and technology. Lama AI, which was founded this year, hopes to change that through its AI-powered platform, which it says enables its partners to onboard customers quickly while offering a range of financial products while targeting risk levels.

Lama AI says fintech partners can avoid building their own lending infrastructure, models and secure credit facilities while enjoying increased approval rates. Beyond being a long and costly process, Lama AI says that building a credit product in-house also limits the types of loans that can be offered and the user base that can be served.

“Eight out of 10 small businesses that seek capital for growth, working capital, hiring, seasonality or any other reason get rejected by their primary bank, in many cases, despite being a loyal customer for many years,” said Omri Yacubovich, cofounder and CEO at Lama AI.

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