Can AI Uplift Entrepreneurs That Traditional Banks Reject? | Mercedes Bidart | TED (Level 1)

Many people in Latin America own small businesses. They run corner shops, beauty salons, or food stands. These businesses are very important, but the owners often have a big problem. Banks will not lend them money. Banks usually require paperwork and a credit history, which these owners do not have. Because of this, people must borrow money from dangerous lenders who charge very high fees. A new technology project is changing this. The goal is to help business owners prove they can be trusted. In their neighborhoods, people trust each other based on their reputation. Now, Artificial Intelligence (AI) can measure this trust. Instead of looking at bank papers, the AI looks at the person's smartphone. The system checks text messages to see bill payments. It also looks at social media pages and videos of the shop’s products. This data shows if the owner works hard and earns money. By using this information, the system gives safe loans to thousands of people. This helps them buy supplies and grow their businesses without needing a traditional bank account.