Part 10/12:

• Creditworthiness: Notably, the models excelled in predicting credit default and fraud, signifying their robustness in assessing risk accurately.

• Different Loan Types: The models effectively distinguished between retail, mortgage, and MSME loans, demonstrating adaptability across financial products.

These results affirm that LLMs, when properly fine-tuned, can serve as powerful tools to unify and enhance credit evaluation processes, enabling more inclusive financial services.

Addressing Regulatory and Ethical Concerns

Given that credit assessment is heavily regulated, the team acknowledged challenges around model transparency and fairness. LLMs are often perceived as black boxes, which conflicts with regulatory demands for explainability.