The Roles of Artificial Intelligence in Transforming Credit Risk Assessment in Modern Banking

This article takes into account the implementation of artificial intelligence in credit risk assessment as main objectives and tries to explore the potential benefits from such implementation. It also tries to identify the challenges of its implementation in the banking sector of Bangladesh. To fulfill these objectives the research adopted focus group discussion for finding important data and insights. As AI is not widely used in credit risk assessment in Bangladesh the researcher cannot get sufficient secondary data for analysis. The participants of the discussion agreed that there are huge potential of application of AI in credit risk assessment especially for micro small and Medium enterprises where traditional method not that much applicable. But there are a number of challenges prevailing in Bangladesh that is responsible for poor utilization of such advanced technology in the banking system of Bangladesh. The industry needs to be ready to accept disruptive technology keeping pace international banks.