AI seen to fast-track growth in PHI lending

Philippine banks could accelerate loan growth to as high as 15 to 18 percent with the adoption of artificial intelligence (AI)-powered lending systems, according to Intellect Design Arena Ltd., a global technology provider servicing major financial institutions.

- By KEISHA TA-ASAN

Brajesh Khandelwal, executive vice president and head of lending at Intellect, said the Philippines’ credit expansion has been averaging around 12 percent in recent years, but AI-driven efficiencies in underwriting, loan management and collections could lift growth to “nearly 15 to 18 percent.”

“We do see it is getting increased to 15 to 18 percent as the banks address various bottlenecks in the entire lending process and that’s where we see AI playing a role,” he said, noting that traditional automation efforts are being surpassed by “digital experts” that accelerate decision-making and improve accuracy.

Khandelwal emphasized that the jump in loan expansion could happen as early as this year or in 2026, depending on how quickly banks adopt enterprise-grade AI platforms.

“The banks that would lead this effort will certainly grow faster than the others. That's the competitive advantage AI will give to the banks,” he said.