Nowadays, financial institutions and lending companies are facing huge pressure to process and provide accurate and fast decisions on loan applications. Therefore, more technologies enabling making informed decisions started to appear in the market. Mostly these are credit decisioning engines, usually presented as a decision tree or rules flow. They are designed for the automation of decision-making – decisioning engines evaluate multiple factors to determine the probability of default
How does the decisioning engine work and why should you use it?
Credit decisioning software uses various data sources to evaluate an applicant’s creditworthiness and provide a recommendation on whether the lender should approve or deny a loan application. It calculates credit scores and risk based on the analyzed data, as well as provides real-time risk assessments to allow companies to fully automate the decision-making process and reduce the need for manual review. The entire business logic is usually translated into code and documented in decision trees.
This is how the process looks like step by step:
1. The engine receives the data that is required to make the decision (input).
2. A set of rules is used to execute calculations. Also, data comparisons are conducted.
3. The rules are evaluated so that the credit decisioning engine can properly determine the appropriate outcome based on both the input and the configured rules.
4. The final decision is produced.
In consequence, you can benefit from automated decisioning. Here is what you can get out of such software:
- The accuracy of your lending decisions is improved because the system can analyze a vast amount of data that may be beyond human capability.
- You accept more applications from customers that are likely to pay their loans back because the system is accurate and uses data that is verified by the banks in real-time.
- The risk of human error and bias is almost eliminated. This leads to more consistent lending decisions.
- Efficiency improves and so does customer experience. You can process more applications in less time. This reduces costs and enhances the customer experience as the process is quicker and more straightforward.
- A credit decisioning system increases your revenue by automating processes and having software you trust to provide you with the best customers.
Say goodbye to manual credit decisioning
Decisioning engine offers a high degree of automation and nearly eliminates the need for performing manual processes. It can help inform various types of business decisions – both related to basic day-to-day operations and high-level, strategic business decisions that are more complex and affect a much larger portion of the organization.
Opposite to the manual application process, the automated decisioning engine streamlines the application, approval, and funding procedures. You can move from paper-heavy forms and hours of processing documents to simplified, online applications. Applications can be filled out in minutes which enables the decisioning engine tool to move applicants easily through the workflow along a series of steps and by the predefined criteria.
For some businesses, the implementation of AI into their decisioning processes may seem to be a hard task. In fact, you don’t even need data scientists or developers to make the most out of AI technology. The Planky Decisioning Engine uses both data sources and advanced ML in the tool to provide you with a safe, reliable, and powerful solution.
How to choose the best loan decisioning engine
Wondering how to choose the best provider of your new credit decisioning software? Here are the most important things you should focus on while looking for a decisioning engine:
- Speed. It’s the most crucial advantage of automated decisioning. You should be able to monitor applicants’ credibility and risk in real-time.
- Scalability. You need a decisioning engine that can quickly adjust to the rapidly growing number of applications.
- User experience. The tool should be intuitive and easy so that you can instantly learn how to use it.
- Powerful decisioning that supports all levels of sophistication. Now, you may only need to build simple rule-based decision flows quickly. However, there is a chance you will need advanced decisioning in the future.
- Seamless data integration. Make sure transactional data is delivered through a simple, yet secure API. This makes implementation of the tool much easier and quicker.
- Ongoing support. Data and financial-related services should always provide high reliability and uptime. While choosing your credit decisioning partner, don’t forget to ask about round-the-clock support.
Planky – meet your new Decisioning Engine
Planky Decisioning Engine is a powerful, yet simple decisioning software used by both lending startups and large-scale financial organizations. By integrating data sources from European banks and our internal sources, we make sure your lending decisions are based on the big picture. The software allows you to build your own credit rules (or use the default ones) to optimize your decisioning processes. The data you get is real-time and accurate, so you don’t have to worry about fraudulent activities or data manipulation.
Decisioning Engine analyzes the gathered data with the right metrics to finally deliver an accurate lending decision. You can choose out of more than 150 variables to classify and analyze the transactional data. Your decisioning processes are smarter and more data-driven. At the same time, you can process many applications at once, focusing on those that are highly likely to be repaid. Decisions are made based on bank data – income sources and regularity, as well as expenditures and transaction types.
Planky is here to help
Need support with choosing the right decisioning engine? Do you have questions about technicalities, integration, and the tool itself? Planky experts are here to help – reach out to us if you want to make more informed lending decisions and provide a better customer experience most automatically.
