Real-Time Credit Decisions

There is a evolution happening in the credit industry inspired by marketplace lenders and entrepreneurial companies looking to deliver a more frictionless customer experience. These companies are accessing creative new data-sources to decision, price and close a loan while relying on predictive analytics to better understand risk and profitability requiring less detailed information from the applicant. The result is a frictionless experience that can now happen on a smart phone. The most successful lenders will be the companies who can not only deliver a great consumer experience, but who can also effectively manage the risk and profitability of their lending portfolios. As with most technology inspired change, the winners will be a combination of disruptors and traditional lenders who are able to adopt the emerging technology.

Modelshop is uniquely suited to drive the decisioning for frictionless real-time credit and lending. Modelshop can handle the complex and analytically robust requirements of credit decisioning and can easily leverage non-traditional data sources in analyzing applications in real-time. Modelshop breaks down the barriers between predictive analytics and real-time credit decisioning so that new models and strategies can be developed, analytically tested and deployed as quickly as the business demands. This agility can enable credit organizations be more agile, more competitive and more profitable while helping deliver an incredible consumer experience. Watch a demo

Power a frictionless online origination experience

Completing a loan application from your smartphone requires much more than a great user interface. The key to delivering frictionless origination is to leverage as much data available through online services as possible to render robust decisions, effectively price and close a loan while requiring as little interaction from the consumer as practical.

Modelshop’s flexible data models, interactive APIs and powerful logic engine allows lenders to easily integrate intelligence into every customer touchpoint. The real-time nature of Modelshop models is ideal for interactively retrieving required data and updating offer details while the consumer interacts through their phone or browser.

Quickly automate and deploy agile credit policies

Being competitive in today’s evolving marketplace requires agility. Consumers are demanding more flexible financial products and rapidly changing economic conditions will provide opportunities for lenders who can quickly react to change. With disruptive new competitors in the credit and lending space, companies who can quickly adapt more targeted and relevant products will be the most successful.

Modelshop allows all of the logic and analytics that drive credit decisions to be managed in a flexible and configurable tool accessible to your analysts and quants so that changes in policy can be authored, tested and deployed in hours, not days or weeks.

Provide more robust and personalized credit offers

Leveraging predictive analytics can dramatically improve the experience of obtaining credit. By presenting credit offers that are most attractive and best fit the consumer’s personal situation, lenders can be seen as being in touch with the consumer and create a more personal bond during the critical acquisition process. This level of personalization is more often being demanded by financial services consumers who have grown up expecting it from their experiences in other sectors.

Modelshop’s analytic engine delivers unprecedented flexibility in how data and analytics can be leveraged to drive better personalization. At the core of this capability is Modelshop’s flexible data model and variable engine which allows credit analysts and quants to pull in new data sources and turn them into insights with no advanced coding and without requiring software releases.

Optimize portfolio performance with predictive analytics

Predictive analytics have been leveraged effectively in the credit industry since the 1950’s when standardized credit scores became prevalent. The mortgage turmoil of the last decade have helped illustrate that a static score based on historic repayment propensity is not enough to manage portfolio risk. With historically low interest rates and new competition entering traditional lending, it has become increasingly important for lenders to creatively find and attract a wider field of customers while keeping losses low. Predictive models can be leveraged for more than risk assessment. Predicting the probability an applicant will take an offer, the likelihood of pre-payment and the lifetime profitability of a loan can all significantly impact portfolio performance.

Modelshop is tightly integrated R, Python and Spark engines to allow real-time scoring of virtually any model that can be created using these platforms. Modelshop can regularly assess the performance of models, automatically retrain them and create challenger models all integrated into the standard decisioning process.

Manage stipulations and documentation requirements

A key to delivering a frictionless origination experience while maintaining the integrity of your credit portfolio is to be intelligent about the stipulations and documentation requirements required to close a loan. Legacy origination platforms often do not have the intelligence to help assess the risk vs. convenience trade-offs on friction inducing stipulations such as income verifications, title checks or supporting documentation requests.

Modelshop can intelligently interact with the consumer during the origination process and leverage virtually any online data resource to dramatically reduce the impact of stipulation and documentation requirements. Using predictive analytics and simulations in Modelshop, risk/cost tradeoffs can be projected to optimize the tradeoffs between portfolio performance and customer experience.

Ensure compliance with policy reporting and audit trails

Traditional lenders have learned that having a complete record of every credit policy that touches your customer is critical from both a performance and a regulatory compliance perspective. As innovative lenders leverage technology and analytics more creatively to deliver high-performing portfolios and to reduce customer friction there is a risk that some credit decisions may not be fully explainable or may contain non-conforming bias.

Modelshop provides both traditional and emerging lenders a powerful tool to capture and automate all of their credit policies and analytics in a single platform that manages, tracks and reports on every aspect the decision process. All data, variables, logic and analytics are managed as metadata accessible to business analysts and easily reportable to auditors.