Rich Data Co (RDC) Transparent AI for Banking – Dynamic Business

Rich Data Co (RDC) is an Australian fintech specialized in “Explainable AI“(XAI) for the banking industry. While many AI models are ‘black boxes’ (providing an answer for no reason), RDC builds transparent AI decision engines that allow banks to see exactly why a loan was approved or denied.

This transparency is crucial for regulatory compliance in the financial sector. RDC focuses specifically on commercial and SME (small to medium-sized business) lending, a notoriously difficult segment to automate because business finances are more complex than personal credit scores.

Core technology: the ‘glass box’ approach

Explainable AI (XAI): Their platform uses the Shapley values ​​framework to break down every decision. It provides a ‘reason code’ for each output, helping banks comply with ‘Fair Lending’ rules (such as the Equal Credit Opportunity Act) and explain negative decisions to customers.

Alternative data fusion: The AI ​​doesn’t just look at repayment history; it ingests alternative data (e.g., transaction data, accounting software feeds) to provide a holistic view of a company’s current cash flow, rather than just its history.

Continuous monitoring: Unlike traditional credit scoring (which is a one-time snapshot at application), RDC’s system monitors the borrower’s health over the life of the loan, identifying early warning signs of default before they occur.

Company profile

Founders: Ada Guan (CEO, former director of Oracle/Westpac), Gordon Campbell and Charles Guan.

Headquarters: Sydney, Australia (North Sydney).

Financing: Closed a $37 million AUD (approximately $25 million USD) Series B in mid-2024.

Main investors and partners: Backed by Westpac (one of Australia’s “Big 4” banks) and nCino (a global cloud banking giant). Acorn Capital led their recent expansion round.

Strategic partnership: RDC has deep integration with nCino; its AI powers the ‘nIQ’ intelligence suite used by banks worldwide.

Main usage scenarios

• Usage scenario: Automation of lending to SMEs
• Description: Automates the complex ‘financial allocation’ and risk assessment for small business lending, reducing ‘time-to-yes’ from weeks to minutes.
• Usage scenario: Credit risk monitoring
• Description: Replaces periodic manual assessments with ‘always-on’ monitoring. If a borrower’s cash flow drops dangerously, the bank is alerted immediately.
• Usage scenario: Financial inclusion
• Description: By using alternative data (cash flow) rather than just asset-backed logic, it helps banks make loans to viable businesses that might otherwise be rejected due to a lack of traditional collateral.

Why it matters

Banks are under enormous pressure to deploy AI, but they are terrified of ‘model drift’ and bias. If an AI denies a loan to a minority business owner for no apparent reason, the bank faces huge fines. Rich Data Co solves the ‘trust gap’ by making AI decisions auditable and interpretable, effectively acting as the security layer that enables banks to safely adopt modern AI.

richdataco.com | LinkedIn profile