12 Feb Brokers v. Algorithms: The Human Advantage
An algorithm can only make a judgement based on face value metrics, but has no ability to discern the context of those metrics, or the specific human situation. Brokers, however, can understand a person’s story, as well as the metrics, and therefore may be able to help them where an algorithm cannot.
Once a broker understands a merchant’s story, they still have to find them funding. Whereas an algorithm can leverage pre-selected criteria to find funding options, a broker can leverage expertise, reputation, and trusting relationships to find the best possible deal for his clients. ISOs get to talk to a human, negotiate the terms with an underwriter, and get exceptions that algorithms are programmed to disallow. When the algorithm says the deal is approved for a maximum of $10,000 and your merchant gets an offer from a competitor for $12,000, you’re going to need to get a human involved to match it.