The business challenge
In today’s rapidly changing financial services environment, it is vital for any business that the first interaction with a potential customer meets their expectations in service and speed.
With increasing competition and higher expectations, the origination system has to balance the needs of speed, with customers wanting rapid decisions, and risk management, ensuring that sufficient information is collected for an accurate assessment of risk, fraud detection and to create the most appropriate offer.
If an organisation takes too long to provide funds to the customer, their need for credit could be met from another source with a corresponding effect on profitability. However, without thorough risk assessment and fraud detection the lender’s results will suffer due to increased collections costs, bad debt write-off and fraud losses.
The answer
From the point of the first customer contact through to the final decision, the individual receives a smooth application experience.
Experian’s proposition for origination in unsecured lending brings together robust application processing, data connectivity, decisioning technology and predictive analytics with expert consulting.
Data capture screens allow the accurate input, validation and enrichment of application data to give the right depth of data for decisioning. Workflow functionality drives the application automatically through the process including fraud detection. The solution applies tailored policy rules and calculates multiple scores for objectives including credit risk, indebtedness, risk-based pricing, profitability and Basel II elements.
Once a decision is made to accept, segmentation enables appropriate terms of business to be assigned for each applicant with cross-sell and up-sell strategies implemented for targeted groups of customers.
Business Benefits
- Selecting the right customers to meet growth and quality targets
- Increasing conversion rates, revenue and generate loyalty
- Achieving higher acceptance rates
- Reducing bad debt losses
- Decreasing operational costs
- Achieving compliance with Basel II
- Continually improve business performance
Testimonial
“Since its implementation, the decision processing time for new applications has been significantly reduced and we have achieved full automation of our application operation. We have seen significant business benefits from its use, and expect this to continue both now and in the future as it supports our growth as we expand into other European countries.”
Teambank, German Retail Bank
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