Credit Risk Models for South African Banks: Building TCF-Compliant Underwriting AI Under Basel III
TL;DR A South African bank CRO building or reviewing an AI credit risk scoring model in 2026 faces three regulatory demands simultaneously, each from a different supervisory body, each with its own documentation requirements, and each carrying its own examination consequences. The Prudential Authority requires that IRB credit risk scoring models are validated to Basel […]
AI Governance Monitoring for Collections: What South African Banks and Insurers Need Under FSCA
TL;DR In November 2025, the Prudential Authority and the FSCA published their joint report on AI adoption across South Africa’s financial sector. The finding on ai governance monitoring was precise: governance frameworks for AI are still developing across the sector and vary widely in maturity, with many institutions relying on existing risk-management structures rather than […]
Model Governance for AI Collections in South Africa: Meeting FSCA Validation Standards and Basel III Requirements
TL;DR The KPMG South Africa Ten Key Regulatory Challenges for 2025 places AI model validation and continuous monitoring at the centre of the financial services governance agenda, identifying these as the most critical technical requirements that South African banks must address for AI systems: rigorous testing and validation before deployment, continuous monitoring after deployment, and […]
Churn Prediction for South African Banks and Insurers: Using AI to Prevent Customer Loss Before It Happens
TL;DR Acquiring a new retail banking customer in South Africa costs between R800 and R2,500 depending on the acquisition channel, product type, and customer segment. Retaining an existing one costs a fraction of that figure, provided the institution knows the customer is at risk before they leave. Churn prediction is the capability that creates that […]
AI Credit Underwriting for Indian Banks and NBFCs: How to Expand Credit Access While Managing Risk
TL;DR For most Indian bank and NBFC leaders, AI credit underwriting presents itself as a dilemma: expand credit access to underserved borrowers, or maintain rigorous risk management. The instinct is to treat this as a trade-off, that you can do one but doing both simultaneously requires compromise. This framing is wrong, and the evidence from […]
Debt Recovery Software for Indian Banks: Cutting Cost-Per-Contact While Staying RBI-Compliant
TL;DR Take a collections division running 50 agents managing a mid-size NPA book. Each agent makes 80 to 100 call attempts per day and achieves 35 to 55 connected calls. Fully loaded per agent, including salary, provident fund, training, floor space, supervision, attrition replacement, and compliance overhead, the monthly cost runs Rs. 35,000 to 65,000 […]
Banking AI platform in India: How to Evaluate AI Platforms for Bank and NBFC Collections in 2026
TL;DR Every major global Banking AI platform vendor now has an India page on their website. It mentions RBI. It shows the word “vernacular.” It references NBFC. Some have a case study featuring a bank you have never heard of. This is the problem. The Indian Banking AI platform india market attracted significant global attention […]
NPA Recovery Software: How Indian Banks and NBFCs Are Using AI to Reduce NPA Ratios in 2026
TL;DR India’s banking sector just achieved something remarkable. The gross NPA ratio of scheduled commercial banks fell to 2.1 percent by end-September 2025, a level not seen in decades. Public sector banks, which have carried the heaviest NPA burden since the 2015-16 stress cycle, reduced their ratio to 2.6 percent in FY25 from 3.5 percent […]
Model Risk Management for AI Collections: The Framework US Banks Are Missing
TL;DR Your bank almost certainly has a model risk management program. Your model risk management program was almost certainly built around credit scoring models. Those two facts together describe the compliance gap that is showing up in AI model examinations across US banking in 2025 and 2026. The model risk those collections AI systems carry […]
Building a Propensity Model for Collections: How US Banks Predict Payment Behaviour Before Default
TL;DR Once an account transitions to default, the probability of curing it drops to 7%. That single figure, drawn from research on consumer credit default transitions, is the entire business case for propensity modelling in collections. The probability of a current account transitioning to default sits at 23%. The probability of recovering an account that […]
