Corridor Platforms, a New York-based risk management software provider, today announced a machine learning-powered credit risk management platform for small and midsize banks, built in partnership with Clairvoyant. It’ll launch this week in private beta.

“Advancements in digital lending has been a disintermediating force for traditional banks,” Manish Gupta, founder and CEO of Corridor Platforms and a former American Express executive, said in a statement. “For smaller banks, it’s been more difficult to overcome this disruption due to the lack of resources it takes to build platforms in-house that speed decision-making, maintain a disciplined approach to credit approvals, and take advantage of advanced big data analytics to manage risk.”

Overcoming these challenges is easier said than done. Laws like the Equal Credit Opportunity Act require banks to prove that they’re not discriminating based on traits like gender or race, which the opacity of AI algorithms makes difficult. But Gupta said that the digital lending system was designed with transparency in mind.

“An important element of the continued shift to digital lending is the use of advanced data analytics and machine learning to automate, but also leverage, all available customer data to monitor risk and make decisions in real time,” he explained.

Corridor Platforms’ tools allow banks to compare strategies and “instantaneously” evaluate risk. Automated monitoring tracks credit decisions from prospecting to underwriting and alerts system administrators to changes in customers’ credit risks over time.

“This platform is a perfect example of a purpose-built solution that addresses problems unique to specific industries, like lending, and how big data applications can be customized for very specific use cases,” Clairvoyant CEO Chandra Ambadipudi said in a press release. “We see a lot of opportunities ahead for this platform to make inroads with small and midsize banks that are facing the challenges that come with the rapid shift toward digital lending.”

If all goes according to plan, Corridor Platforms will wrap up the beta and roll out a public version of the platform by the fourth quarter of 2018.

Corridor Platforms spun out of Corridor Funds, a credit analytics company Gupta helped launch last year. In February, operations management and analytics company EXL acquired a minority stake in Corridor Platforms.