AI is about to become a bigger part of lending.

You can take that to the bank.

From American Public Media, this is Marketplace Tech.

I'm Megan McCarty Carrino.

Only about 13% of banks are currently using artificial intelligence in their credit and lending operations,

according to a recent report from Cornerstone Advisors.

But there's growing interest in giving the technology a bigger role.

Using algorithms and machine learning to decide whether

someone should qualify for a loan comes with some obvious concerns like transparency or bias,

but it could help some low-income consumers qualify when they otherwise wouldn't. Some applicants

don't have required documentation for

loan applications, and AI could model credit risk based on a range of data points beyond traditional

credit scores. The topic was discussed at a recent conference of the Boston Federal Reserve.

Marketplaces Nancy Marshall-Genzar was there and filed this report.

Emily Williams is sitting at a podium in a room full of economists at the Federal Reserve Bank

of Boston.

She's answering lots of questions about a paper she wrote on whether AI and FinTech can help

level the playing field for consumers who are left out of the traditional banking system, the unbanked.

She's an assistant professor at Harvard Business School.

During a break in the action, Williams tells me, yeah, new technologies could make a difference.

We think about fintech sort of bringing down the cost of financial services, increasing competition, expanding the pie.

Williams says fintech apps that help you track your money and budget can also keep you safe from things like overdraft fees.

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