Given its innovative nature, it may raise some points of attention for financial entities that should be properly understood by supervisors. Another significant innovation is Artificial Intelligence (AI), the use of which is also increasing. One example is its impact on the credit market.
The growing availability of data on households and businesses and the adoption of advanced techniques based on AI can mitigate information asymmetries between borrowers and lenders, and can improve credit risk assessment. The spread of the internet allows intermediaries to offer traditional financing through digital channels, and new services, such as instant lending, based on the automated assessment of creditworthiness.