Toyota Financial Services (TFS) has launched an evaluation of AI software from Aire to spot customers with higher risks of delinquency.

Aire’s machine learning technology will identify which lessees have entered customer delinquency by skipping a payment, and will give TFS an estimate on how likely they are to default on further instalments.

Aire’s software has already been used by lenders, including p2p lender Zopa, in the initial credit application phase. Customers that cannot be assessed by lenders on their own are invited to a joint virtual interview with Aire; their responses are then analysed and used to augment data for the lending decision.

The partnership with TFS constitutes the first time Aire’s software will be used to manage the contract’s lifetime, beyond underwriting. It is also Aire’s first collaboration in the car finance space.

Fran Kenny, operations director at TFS, said: “At TFS we are dedicated to exploring better ways of working to benefit our customers’ ever changing needs. Working with Aire you can be sure that you are ahead of the curve in using the most up-to-date approach to understanding your customer’s situation.

“Aire has adapted its credit assessment technology so that it exactly fits our needs, and we will use this evaluation to build the best solution possible in close collaboration with the Aire team.”

Aire’s head of partnerships, Matt Davies added: “After our recent announcements on partnerships with a major online retailer [N Brown] and a p2p lender [Zopa], we are adding yet another sector and use case to our growing number of partnerships.

“The recent months have proven that our platform is truly universal. We are on a mission to help lenders and borrowers find the right level of credit in every sector, at every stage of the credit cycle.”

Based in London, Aire was founded in 2014 by a collective of engineers, researchers and entrepreneurs.