AI innovations: How Lenvi is balancing progress with responsibility

The words ‘generative AI’ (genAI) have garnered a lot of interest since November 2022, when large language models (LLMs) were launched to the wider public. As with any new technological revolution, think the first smartphone launching in 2007 and the subsequent new wave of financial technology startups, it has reignited interest and discussions around the use cases of AI in financial services.

Machine Learning (ML), however, is not new to the industry which began adopting various ML infused processes to automate workflows in the 2010s. Due to the recent advancements made on the front of genAI, agentic AI and other forms, AI infused financial product innovation is gaining traction, not least because of this broader public awareness.

The Bank of England reports 75% of firms are already using AI, while a further 10% are planning to adopt it within the next three years, highlighting the rapid integration of AI in the broader financial sector.

In this article we will focus on what AI-infused innovation means for lending. Focussing on what is concretely possible in the near term to improve outcomes for consumers, help lenders deliver on the promise of personalised lending journeys, and making sure agents can deliver better customer service through improved agent interfaces.

Market scrutiny of AI adoption

Large-scale deployment of ML and AI remains limited, in part due to public concerns, with most financial institutions (FIs) taking a cautious approach.

The Financial Conduct Authority (FCA) has recently criticised this hesitancy, with various industry voices drawing comparisons to the slow adoption of cloud-based banking technology in the late 2010s.

Governments in the UK, Europe, and beyond are currently balancing the need for advancing innovation with scrutiny and appropriate risk management, with the overarching aim to closely monitor the impact on end users.

Existing regulatory frameworks are being adapted to include coverage, such as in the case of copyright law, while full blown AI specific laws are also being developed and implemented, alongside cybersecurity and digital information bills. These new laws are proposed to alleviate concerns about potential harm that unregulated AI developments could cause, while ensuring that any AI technologies align with UK legal standards, and UK values.

FIs must further navigate concerns around data ownership and quality.

Besides the ethical implications, such as coded bias and explainability, the high costs and sustainability issues associated with AI implementation further complicate current widespread adoption.

So how do all parties in the lending ecosystem drive uptake of a technology that truly revolutionises credit provision, while taking all the above into consideration?

Driving insight-based lending innovation forward

The complications and hurdles posed to lenders when infusing AI into their technology stacks and product delivery, while also considering resources allocated, are very real yet not insurmountable.

Breaking down AI-infused lending technology adoption across the various stages of the lending lifecycle will help, focusing on quicker wins.

As per a recent UK Finance report, FIs allocated 12% of their technology budgets to AI in 2024, which is expected to rise to 16% in 2025. This might currently only be in Research & Development (R&D) expenditure. However, if we instead consider AI within the broader digital transformation journey, the industry could see impact sooner, rather than only discussing longer term conceptualisation.

The Lenvi way

As we continue to be at forefront of the lending technology revolution, Lenvi is actively embracing AI to enhance our operations, services and technology solutions provided to clients.

Our development philosophy is underpinned by our own internal AI policy that ensure the ethical and appropriate use of AI within our corporate applications. We are committed to responsible adoption of new technologies, particularly in sensitive areas such as lending decisions, and ensure we communicate this effectively and clearly to our clients and their consumers. These efforts are supported by our strong partnership with Microsoft, giving us beneficial access to their vast investments in AI experimentation and innovation.

As a fully FCA regulated organisation we are leveraging advanced AI tools to:

optimise workflows,

enhance product delivery, and

ensure responsible adoption.

Moving from concept to product, our AI based Document Analysis tool was shortlisted for innovation awards last year and is already streamlining the management of high-volume customer emails; automating the sorting and classification process.

Through leveraging tools such as Azure's Document Intelligence, ML Studio, and Large Language Models (LLMs) we can enhance efficiency, improve customer satisfaction, and ensure compliance for our clients.

Lenvi AIDA significantly improves the overall customer experience while reducing operational costs and freeing up staff to focus on more complex tasks.

In current client use cases, we’ve already established a 90%+ success rate in identifying customers, and an 80% success rate in identifying the documents they attach.

Latest developments

In line with evolving needs, our engineers and product team are also continuing to optimise workflows using AI to improve the assistance of vulnerable customers. We are making sure that throughout the lending lifecycle a proactive approach by lenders ensures fair and consistent treatment, while making sure firms comply with regulatory requirements.

Finally, our Lenvi KYC offering has infused AI to revolutionise creditworthiness assessments by seamlessly analysing and classifying documents. This AI-driven solution proactively assesses financial stability and risk, tailoring support to meet customer needs.

Together with our partners and clients we continue to enhance our AI-infused solutions, continuously aiming to be at the forefront of transforming financial services, addressing customer issues with personalised precision. We remain dedicated to ethical and transparent AI adoption for all, while helping clients ensure full regulatory compliance.

The future of lending is here, and Lenvi continues to help delivering smarter, safer, and more personalised lending experiences for all.