Credit Decision Platform: Flexible decision-making and consistent processes

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1 Credit Decision Platform: Flexible decision-making and consistent processes

2 2 The Credit Decision Platform for automated loan origination Efficiency and intelligence are crucial: Leave nothing to chance with your lending decisions The Credit Decision Platform is a robust and scalable software solution for processing and managing credit applications. Application data can be captured through multiple channels, including existing front-end systems. The Platform supports all process steps for capturing and enriching data, assessing risks, and approving credit applications. It meets the various requirements specific to consumer and corporate lending. Standardized and consistent The Credit Decision Platform enables standardized and consistent lending decisions to be made on a centralized platform throughout an organization. Moreover, the platform can model any number of diverse credit institution requirements. This includes the applying of bank-specific loan origination guidelines for individual credit products or country-specific requirements as reflected in different data structures, approval processes, credit rating processes, currencies, and external data suppliers. Easy to adapt and expand Complex loan origination strategies are modeled in the Credit Decision Platform using graphical rules. New and amended business processes and rules can be flexibly implemented, tested, and integrated. Changes to credit policies or market conditions can be captured in real-time by business users through the graphical environment without the assistance of IT resources. Traceable and audit-proof All incoming and outgoing data relating to a credit application is stored in an audit-proof data base. Every interaction within the loan origination process, whether system-generated or user-invoked, is stored as part of the metadata, e.g. content, author, and time of a data change. This makes it possible to determine at all times who approved an application and when.

3 The Credit Decision Platform for automated loan origination 3 Efficient and automated The Credit Decision Platform reduces processing times and enables the partial or full automation of the credit decision process. Depending on a bank s lending guidelines, applications can be sent to a loan officer or credit analyst for manual underwriting. All data including information from credit bureaus that is necessary for manual underwriting is readily accessible by the loan officer or credit analyst. Monitoring and simulation Credit decision rules can be tested before they are placed into operation. This is done by simulating revised rule models against a historic set of credit applications. Simulation results provide valuable information on the impact of a model change, e.g. by analyzing the number of credit applications that would be automatically approved, automatically rejected, or sent for manual processing. Integration Credit application data can be captured manually or imported from existing front-end systems. The Credit Decision Platform provides an interface for this purpose that can be accessed by third-party systems. Any type of database or system can be connected to serve as internal data sources for data enrichment. To interface with external data sources, the Credit Decision Platform provides standard connectors to various credit bureaus worldwide. Pioneering technology ACTICO stands for technology that is forward looking, innovative, and practical. The Credit Decision Platform is based on ACTICO s Visual Rules for Finance technology, which is recognized by analyst firms as a market leader. With Visual Rules, rule and process models are graphically implemented and converted into executable Java code. End users of the application work with modern, userfriendly web interfaces that offer optimum support in credit decision processes.

4 4 The Credit Decision Platform for automated loan origination The path to greater efficiency: the Credit Decision Platform guides every step in the process Credit decision processes are varied and complex. Data from new credit applications and existing loans are imported from a wide variety of different internal source systems and enriched with information from external data sources. After credit risk and compliance assessments are completed, lending decisions are executed on a partially or fully automated basis. The Credit Decision Platform supports automated credit decision processes typical to consumer lending (B2C). Also supported are complex manual underwriting processes such as those commonly used for corporate lending (B2B) Data capture Pre-screening of credit applications Data enrichment Multichannel data capture and validation of incoming credit applications Fully configurable data entry screens for capturing customer-and transaction-related data Data validation for completeness and correctness Compliance checks (e.g. name matching) Fraud prevention Integration with external data sources (e.g. credit bureaus)

5 The Credit Decision Platform for automated loan origination Scoring and rating Credit decision Administration and archiving Credit risk assessment based on internal and external information Risk-sensitive pricing Automated and/or manual decision processes Multi-stage and role-based approval processes Results of the credit decision process sent to third-party systems Saving and archiving of credit data Generation of printable forms Monitoring and early warning Monitoring internal and external data (e.g. payment behavior, information provided by credit bureaus) Built-in early warning capabilities Reporting Credit risk reporting at portfolio and transaction level Reporting related to process data, e.g. processing times of credit applications

6 6 The Credit Decision Platform for automated loan origination Our approach: graphical, intuitive, and rule-based Traditional IT-solutions for loan origination are often too rigid and inflexible to meet credit institutions growing requirements with regard to complexity, transparency, and flexibility. The ACTICO Credit Decision Platform enables organizations to implement and manage the credit application process with great agility and transparency. Visual Rules for Finance the graphical model authoring framework All business rules and processes are graphically administered in a model authoring framework based on the Visual Rules rule management system. Administrative users have control over all business rules and can modify them as required without jeopardizing quality. Credit decision models have their own lifecycle and can be updated in-dependently of software release lifecycles. Visual Rules allows organizations to implement a wide variety of loan origination strategies in the form of graphical rules. This includes rules for validating credit applications, checking of rejection criteria, and carrying out risk assessments based on scoring and rating models. All rules are traceable and can be changed at any time. Our software suite Our modular software suite allows you to make processes more efficient and automate intelligent decisions. It is the perfect basis for your enterprise application! The following make our software suite a cut above the rest: Systematically graphical, model-based approach: modeling process and rule definitions increases transparency and improves cooperation between specialist departments and IT. Lean technology: successfully used in over 500 international projects Integrated software products: universal portal, central user and rights administration, unified security concepts; all this minimizes total costs (set-up costs, project implementation costs, operating costs, etc.) In addition to the business rules, the following logical components are administered in Visual Rules: Business rules technology Visual Rules for Finance Process models that define credit application workflows User interfaces are created for capturing and processing of credit applications Integration models enable direct connections to internal and external systems. In addition, standard connectors provide access to various credit bureaus worldwide Publishing models define the rules for exporting credit application data

7 The Credit Decision Platform for automated loan origination 7 Credit Manager Web-based screen for processing credit applications Credit Manager: processing and deciding on credit applications The Credit Manager is the main component for the operational side of credit application processing and decision. It integrates the rules, processes, user interfaces, and other components implemented in Visual Rules into a central platform and makes it possible to have lending decisions that are uniform and consistent throughout an organization. Credit decision processes can be fully or partly automated. The end users of the system (e.g. credit analysts, underwriters) have the benefit of a user-friendly, web-based interface for manual loan underwriting processes. Credit Bureau Gateway The Credit Bureau Gateway conveniently consolidates a variety of external data providers, for instance credit bureaus. Several standard interfaces to credit bureaus are available for the Gateway. The Gateway harmonizes different external interfaces and standardizes access processes. Credit Database: central, reliable data storage All internal and external data for a credit application is housed in an audit-proof data warehouse called the Credit Database. Comprehensive metadata is saved for every system and user action, including the content, author, and time of a data change. This makes it possible to determine at all times who processed an application when and with what outcome.

8 ACTICO EMEA ACTICO GmbH Ziegelei Immenstaad Germany info@actico.com Americas ACTICO Corp. 200 S. Wacker Dr. Suite 3100 Chicago, IL 60606/USA info@actico.com Asia & Pacific ACTICO Pte. Ltd. 11 Bishan Street 21 Singapore info@actico.com ACTICO is a leading international provider of software solutions and technologies for decision management. In a digital world it is necessary to process large volumes of data and make fast, consistent and auditable decisions; that is where our software solutions provide an advantage. Business rules and processes can be easily adapted and executed automatically, which improves the efficiency and agility of our customers in their competitive area. This also enables them to accelerate their growth, innovate effectively, stay compliant and as a result, increase profits. ACTICO provides software solutions for the areas: Credit Risk Management: Assess and monitor credit risk Loan Origination: Automate credit checks and decisions Compliance: Enable transparency, comply with regulations and avoid fraud Claims Management: Make claim settlement processes quicker, consistent and cost-effective Client Management: Handle sensitive customer data securely from onboarding to reporting ACTICO s roots go back to 1997 and Innovations Software Technology GmbH, which became part of the Bosch Group in ACTICO was formed when Bosch spun off its financial software operations in November As an independent company, it supports its international customers from locations in Germany, the U.S., and Singapore. More information at 10/2015 RE