AI for public companies in Ecuador

Terms worth knowing

Alternative credit scoring

Alternative credit scoring is a model that estimates credit risk with data beyond the credit bureau history, such as utility payments, phone top-ups, account activity or the use of digital channels. It helps assess people with a thin credit file. In Ecuador, each data source needs a valid legal basis under the LOPDP.

Credit origination

Credit origination is the process that runs from a loan application to its approval and disbursement. It covers data capture, identity validation, repayment capacity analysis, the decision and the signing. When every step is recorded, the institution can answer the applicant faster without losing control over risk.

Credit pre-assessment

Credit pre-assessment is the first review of an application: it organizes the information, checks documents and flags inconsistencies before an analyst decides. With AI support, the system assembles the file and proposes a reading of the case, while approval stays with a person in the risk area or on the credit committee.

Early delinquency

Early delinquency is the delay in the first days after a due date, when the installment can still be settled with a reminder or a simple arrangement. Handling it in time keeps the obligation from aging until it becomes past-due portfolio, and it usually costs less than recovering it later.

Portfolio segmentation

Portfolio segmentation is the grouping of loans or customers by days past due, amount, product, payment history and preferred contact channel. It lets you give each group its own collection strategy, with messages, timing and escalation levels that fit its risk and its relationship with the institution.

Probability of payment

Probability of payment is an estimate, based on historical and behavioral data, that a customer will meet an obligation within a given period. In collections it helps decide whom to contact first, through which channel and with what offer. Like any model, it is recalibrated with the actual results of each period.

Open finance

Open finance is the model in which customers authorize their financial institution to share their data with third parties, through secure APIs, so they can receive other services, such as consolidating accounts or getting credit based on better information. In Ecuador, that exchange must comply with the LOPDP, especially its consent and purpose rules.

Embedded finance

Embedded finance means financial services, such as credit or insurance, offered inside a non-financial company's platform at the moment the customer needs them. One example is the financing offer that appears at checkout in an online store. The financial institution behind the product remains responsible for risk, identity and compliance.

Operational traceability

Operational traceability is the ability to reconstruct what happened in each case: who did what, when, with which data and with what result, including the actions of automated and AI systems. It lets you answer audits, customer complaints and supervisor requests with evidence instead of memory.