L&T Finance Launches ‘Project Cyclops’ AI Credit Engine

July 9, 2024, Mumbai: L&T Finance Ltd. (LTF), one of the leading Non-Banking Financial Companies (NBFCs) of the country, today announced the deployment of the beta version of ‘Project Cyclops’, a cutting-edge credit risk assessment and automated decision-making digital credit engine which harnesses the power of Artificial Intelligence (AI) and Machine Learning (ML) to determine the repayment capability and credit quality of potential customers. ‘Project Cyclops’ is a revolutionary in-house developed proprietary credit engine which facilitates an in-depth assessment of the customer’s potential by ingesting bureau, account aggregator and alternate trust signals at scale using ML based ensemble scorecards built after an extensive analysis and overlay of historical credit performance data on all the axes.

LTF has deployed the beta version of ‘Project Cyclops‘ across 25 locations through a network of 200 selected dealers offering its Two-wheeler Loans, aiming to revolutionize the credit assessment space with this innovative digital solution. The AI-driven software uses advanced algorithms and AI-powered analytics to analyze vast amounts of data from various sources, including behavioral patterns, financial data, demographics, and socio-economic variables.

Commenting on the occasion, Mr. Sudipta Roy, Managing Director & CEO of LTF said, “In today’s ever evolving digital landscape, securing fast and reliable credit for businesses and individuals is more crucial than ever. However, traditional credit scoring methods often rely on credit bureau data and manual income assessments, leading to inefficiencies and delays, while not fully leveraging the potential of data available in our ecosystem today. ‘Project Cyclops’ is designed to address this issue by leveraging advanced algorithms and AI-powered signals to take actions based on vast amounts of data from multiple axes and provide a much-required depth to the existing method of credit underwriting, while ensuring adherence to existing risk and credit guardrails.”

With ‘Project Cyclops‘, we are confident that our underwriting capabilities will become even more comprehensive and accurate, enabling us to make informed decisions with a faster Turn-Around-Time (TAT). The development of this in-house proprietary engine will significantly add to the underwriting depth of the Company and help create a deeper moat in its fulcrum businesses,” Mr. Roy added.

Key features & benefits of ‘Project Cyclops’ include:

  • Predictive Modeling: Utilizes ML-based predictive modeling to accurately predict the likelihood of customer default, enabling informed decision-making.
  • Data Integration: Combines credit bureau data with alternate sources, increasing confidence in existing and potential customers.
  • Risk Assessment: Includes advanced risk assessment capabilities to identify potential risks and provide actionable insights, allowing for informed decisions and minimizing potential losses.
  • Risk-Weighted Credit Solutions: Provides risk-weighted credit solutions to New-To-Credit customers, improving conversion rates and contributing to financial inclusion.