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Banks Need to use AI to Help Millennials Address Student Loan Debt

by on October 26, 2017
 

Student loan debt is a very real problem in the United States. Finding innovative solutions to counter this problem is not straightforward. Personetics Cognitive Banking deploys artificial intelligence to achieve this goal in a convenient manner. Quite a few banks already use their applications for many different purposes. Tackling student debt is one of the latest use cases, An interesting venture well worth paying close attention to in the future.

There are many different issues associated with student loan debt. First of all, there the burden itself. These loans aren’t cheap and cost a lot of money to repay over time. Right now Americans owe over $1.4tn in student loan debt. This is a very high amount and one that will not change or diminish in the future. The more time progresses, the higher the interest fees become. Especially Millennials are struggling with repaying this debt, which is no real surprise.

AI can Address Student Loan Debt

Artificial intelligence can be of great help in this particular regard. Being debt free is not something one can achieve without help these days. Otherwise, student loan debt figures would decline over time. Unfortunately, that is not the case, as the numbers keep rising every year. Similar issues have been recorded in the UK and a few other countries. It is unclear how issues are being tackled in those parts of the world, though.

While most graduates can afford to repay their student loan ahead of schedule, few of them do so. It is evident these people need a nudge in the right direction. An Ai can certainly help in this regard. The goal is to ensure people make better financial decisions when the hard work is done on their behalf. All it takes is a helping hand to make sure people take care of their debt quicker. Using predictive analysis should effectively help Millennials in this regard.

There are many benefits to solutions such as this one. Spending a bit more money on repaying a student loan can reduce debts by 5% or more. Moreover, it speeds up the process by three to five years or more. There is no reason not to get involved with this business model, for obvious reasons. Various banks are interested in this concept, but most have yet to pull the trigger.

Header image courtesy of Shutterstock

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