Financial Inclusion in Emerging Economies: The Application of Machine Learning and Artificial Intelligence in Credit Risk Assessment

In banking and finance, credit risk is among the important topics because process of issuing a loan requires lot attention to assessing possibilities getting loaned money back. At same time in emerging markets, underbanked individuals cannot access traditional forms collateral or identification that required by financial institutions for them be granted loans. Using literature review approach through documentary conceptual analysis investigate impact machine learning artificial intelligence assessment, this study discovered have strong on assessments using alternative data sources such as public deal with problems information asymmetry, adverse selection, moral hazard. This allows lenders do serious analysis, assess behaviour customer, subsequently verify ability clients repay loans, permitting less privileged people credit. Therefore, recommends banks lending invest more ensure financially excluded households can obtain