For a modern Fintech – it’s time to say goodbye to entry-level, inadequate origination capabilities and move to ADEPT Decisions. The toolkit that will maximise the results of your portfolios by addressing all performance metrics
Why do lenders require a Decision Engine and a Loan Origination System?
What is a Loan Origination System?
Loan Origination Systems (LOS), also known as Application Processing Systems (APS), are complex tools that do a lot of heavy lifting. They have to manage the credit application from inception to completion, including all of the following tasks:
Gather data through application screens, internal files and third-party sources
On top of all of these tasks, most Loan Origination Systems include rudimentary structures for the assessment of the credit application. Simple policy rules, scorecard implementation and cut-offs enable the Loan Origination System to be a basic end-to-end solution for account origination.
Understandably, the decisioning capability housed within a Loan Origination System is entry level, and inadequate for the needs of a modern FinTech.
- Implement multiple score types for each application.
- Input traditional, regression, tree and Machine Learning models directly into the system.
- Call external scoring services for frequently redeveloped models.
- Interface directly to a local credit bureau to retrieve data.
- Conduct A/B testing of multiple credit bureaux to find the best data for your decisions.
- Save bureau costs by only calling when necessary.
- Apply policy rules for instant application knock-outs.
- Chain decisioning together to complete full assessment of all application criteria – accept/decline, exposure, affordability, pricing etc.
- Implement A/B testing to improve results.
- Bring activity and velocity data into the decisioning to identify suspicious activity.
- Calculate fraud prevention scores to quantity risk.
- Apply weighted fraud rules to maximise identification and minimise false positives.
Typical Benefits of ADEPT Decisions over a Loan Origination System
ADEPT Decisions will typically deliver these benefits which are beyond what a standard Loan Origination System can provide.
A Loan Origination System will be able to perform some basic scoring and policy rules setting, but only a decision engine has the true flexibility and functionality to perform complex calculations and make granular assessments which maximise the results of a portfolio by addressing all performance metrics.
| Originations Metrics | Improvements |
|---|---|
| Increase Acceptance Rate | + 10-15% |
| Decrease Bad Debt | – 20-25% |
| Increase Profit | + 15-20% |
| Decrease IT Costs | – 35-40% |
| Decrease Turnaround Time | – 5-10% |
| Increase Take-up Rate | + 5-8% |
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We provide a FinTech toolkit which includes software and analytical solutions to automate and simplify your lending process.
Contact us to learn more about how our decisioning solutions can benefit your business.
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Elm House, St Julian’s Avenue,
St Peter Port, Guernsey GY1 1GZ,
Channel Islands
