There’s been a lot of talk about Artificial Intelligence (AI) lately: Self-driving cars, robots that “learn” behavior, and computers that beat masters of chess, go, and other games. Along with the awe that is felt when these machines outperform us in nearly all cognitive tasks, we also experience a sort of fear. Perhaps such a response is natural, given years of mass media and widely popular movies that shed light on the possibility of machine dominance over humans. Yet, we cannot deny the fact that computers process information and execute more accurately and consistently than any human possibly can (typing a keyword in Google vs. asking a librarian to find relevant articles/books: which would you prefer?).
Recent studies by researchers in University of Pennsylvania, Wharton School of Business, show that people are indeed averse to algorithms. Even after receiving data that an algorithm based program made better investment decisions, subjects were reluctant to accept it as the primary option. On the other hand, people felt much better when given opportunities (even minor) to engage and participate in the decision process. What does this mean? It means that we like to push buttons, even if they do nothing more than light up in pretty colors, while the computer works its magic.
Likewise, many online loan companies utilize specific credit algorithms to calculate the loan terms for their customers. Those that simply lend money off the whim are not sustainable and are likely to provide questionable service down the road. Thus, for small business owners, it will be beneficial to seek small business loan options from established and reputable lenders and banks. Alternative online lending companies have made it their niche to efficiently calculate rates and terms via certain algorithms, and have benefited many growing small to mid-sized businesses. LVRG Funding, for example, streamlines the process, and specifically customizes its funding model to meet each individual and business’ needs. At the end of the day, no two small business owners are alike, each has their own motivation, goals and passion. Technology has its place, but a computer doesn’t care what your story is. We do! To find out more, give us a call at (855) 998-5874.