AdalFi’s AI Model Powers $200M+ in Lending with 0.2% Defaults and Continuous Learning from Repayments

Around.pk readers track fintech not just by funding but by throughput and loss rates. AdalFi’s update checks both boxes. The company has enabled more than $200M in partner lending with defaults at 0.2%. Its AI model has processed 1.2B+ transactions and evaluated 30M+ borrowers. Most importantly, the model learns from over 50K repayments each month so selection and limits improve over time.

The design principle is a closed-loop system that compounds accuracy. AdalFi formalizes this as the AdalFi Lending Loop — Assess → Activate → Disburse → Optimize — and treats it as the backbone of product delivery.  The Assess layer, powered by the AdalFi Analytical Architecture, ingests core, open banking and bureau data to output explainable, policy-aligned decisions. That alignment reduces variance between what risk teams want and what front-end experiences deliver.

Activation is integrated into the scoring fabric. Event-driven campaigns run across SMS, push, email, in-app and agent scripts, and they are triggered by score updates and user behavior. The result is higher conversion with less manual chase.

Disbursement is engineered for speed without giving up control. For prequalified customers the journey is designed to finish in under a minute. SDKs and APIs embed in digital channels and are pre-integrated with major cores like Oracle FLEXCUBE, Temenos and Symbols, which is a practical advantage for banks that want quick wins.

Optimization closes the loop. Real-time signals on balances, cash-flow shifts and repayment performance feed directly back into the scoring layer, allowing dynamic limit management and proactive outreach. That reduces roll rates and protects portfolio health.

The learning architecture runs at two levels. Banks get an inner loop that trains on-prem using daily transactions and outcomes without data leaving the perimeter, and a federated outer loop that aggregates anonymized model performance across partners. The outer loop benefits from 50K+ repayment events monthly and strengthens the model while preserving privacy.

Delivery matters, so AdalFi documents a 12-week path to production with milestones for model testing, policy configuration, journey design, integrations and campaign activation. That is appealing for banks that need tangible results inside a quarter.

AdalFi’s international trajectory is supported by leadership additions. Ian Read leads Credit Excellence to keep models and policies tight. Emre Unlusoy leads MEA sales to convert demand into deployments. For Pakistan’s fintech watchers the takeaway is simple. When a lending platform’s learning rate rises with every repayment, growth and governance can move in lockstep.