From Raw Data to Risk Classes

# From Raw Data to Risk Classes Banks and lenders use AI to sort customers into risk categories—essentially predicting who's likely to repay a loan and who isn't—by analyzing patterns in messy real-world data like payment history and income. This process requires turning raw information into clear, usable categories that help lenders make faster and more consistent decisions. Understanding how this works matters because it affects whether you'll get approved for credit and what interest rate you'll pay.