Extending the Credit Offers decision strategy with Credit Eligibility

3 Tasks

30 mins

Pega Credit Risk Decisioning

Visible to: All users

Beginner

Pega Credit Risk Decisioning

English

Scenario

When a customer applies for a cash loan, the Credit Offers decision strategy generates three key outputs: a credit offer, a credit risk score, and credit eligibility. This strategy relies on external Credit Bureau data, a risk-based pricing model, and a scorecard to determine the customer's credit score.

The business has established various credit policy eligibility rules, such as an Age check, an Employment status check, a Bad credit history check, and a Minimal income check that dictate when a customer is ineligible for credit. A new requirement is a Document check policy rule.

If a customer meets any of these criteria, their credit application is declined. Additionally, the business is required to provide a reason for the denial of credit to the customer.

The following table provides the credentials you need to complete the challenge:

Role	User name	Password
Credit Risk Manager	CreditRiskManager	rules

Your assignment consists of the following tasks:

Task 1: Import eligibility rules and add a new rule

Import the existing checks. Add the Document eligibility Rule that checks if the customer's main document has expired.

Task 2: Map data from the Equifax Response strategy

Utilize data from the Equifax credit bureau for eligibility conditions in credit offers:

Target	Source
.CBTotalLiabilities	EquifaxResponse.CBTotalLiabilities
.AT57S	EquifaxResponse.AT57S
.CBScore	EquifaxResponse.CBScore

Task 3: Apply the relevant eligibility conditions

Apply the credit policy rules to customer data and inform customers of any non-compliance with the credit policies.

 

You must initiate your own Pega instance to complete this Challenge.

Initialization may take up to 5 minutes so please be patient.

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Challenge Walkthrough

Detailed Tasks

1 Import Eligibility rules and add new rule

1. On the exercise system landing page, click Launch Pega Infinity™ to log in to the Decision Management portal.
2. Log in as a Credit Risk Manager:
   1. In the User name field, enter CreditRiskManager.
   2. In the Password field, enter rules.
3. In the My Worklist section, click Credit risk strategy to open the change request.
4. In the Scope of changes section, click Credit Offers to open the decision strategy.
5. Right click on the canvas, and then select Import > Proposition data to add the component to the canvas.
6. Right-click the Proposition data component, and then select Properties to configure the component:
   1. In the Proposition data properties dialog box, in the Group list, select Eligibility Rules.
   2. Click Submit to close the Proposition data properties dialog box.
7. In the top-right corner, click Save.
8. Open the Test run pane to test the EligibilityRules component.
   1. In the Settings section, select Data set.
   2. In the Data set field, enter or select SimulationSetDDS.
   3. In the Customer ID field, enter or select Customer70.
   4. Click Save & Run.
   5. Click the EligibilityRules component.
      Note: In the Test run pane, in the Results in Credit Offers section, check that the number of pages is eight.

9. In the navigation pane, click Home to return to the homepage of the application.
10. In the My Worklist section, click Credit Risk Strategy to open the change request.
11. In the Scope of changes section, click Eligibility Rules to open the decision data.
12. Inspect the descriptions of the checks, and then close the window.
13. Click Export, to download the Decision Data CSV file.
    1. Open the downloaded CSV file.
       
    2. Add a new row to the table with the following values:

       pyGroup	StartDate	EndDate	pyIssue	pyIsPropositionActive	pyName	pyLabel	Weight
       Eligibility Rules			Origination	Always	Document Check	Applicant's main document is expired	1

    3. Save the CSV file, and then return to the exercise system.

14. Click Import.
    1. Click Choose file.
    2. Select the modified CSV file.
       Note: Notice the nine records in the source file and the addition of one record.
    3. Click Import.

15. Confirm that the Document check is listed, and then click Save.
16. Close the Decision Data window to return to the Credit risk strategy change request.
17. In the Scope of changes section, click Credit Offers to open the decision strategy.
18. Open the Test run pane to re-test the EligibilityRules component.
    1. In the Settings section, select Data set.
    2. In the Data set field, enter or select SimulationSetDDS.
    3. In the Customer ID field, enter or select Customer70.
    4. Click Save & Run.
    5. Click the EligibilityRules component.
       Note: In the Test run pane, in the Results in Credit Offers section, check that the number of pages is nine.

2 Map data from the Equifax Response strategy

1. Right-click the canvas, and then select Enrichment > Set property to add the component to the canvas.
2. Hover over the Eligibility Rules Proposition data component, and then click and drag the grey arrow to connect it to the Set Property component.
3. Right-click the Set Property component and then select Properties to configure the component:
   1. In the Name field, enter Set CB Properties.
   2. In the Define action, target, and source section, click Add item.
   3. In the Target field, enter or select .CBTotalDelinquency.
   4. In the Source field, press the Down arrow key on the keyboard and select EquifaxResponse from the list, and then select CBTotalDelinquency, from the list.
   5. Repeat steps 3b and 3c to add the following Target and Source properties:

      Target	Source
      .CBTotalDelinquency	EquifaxResponse.CBTotalDelinquency
      .AT57S	EquifaxResponse.AT57S
      .CBScore	EquifaxResponse.CBScore

   6. Click Submit.
      

3 Apply the relevant eligibility conditions

1. Right-click on the canvas, and then select Arbitration > Filter to add the component to the canvas.
2. Hover over the Set Property component, and then click and drag the grey arrow to connect it to the Filter component.
3. Hover over the Filter component and click and drag the grey arrow to connect it to the Results component.
4. Right-click the Filter component, and then select Properties to configure the Filter condition:
   1. In the Name field, enter Credit Eligibility.
   2. In the Type section, select Proposition filter.
   3. In the Proposition Filter field, enter or select EligibilityCheckConsumer.
5. Next to the Proposition filter field, click the Open icon.
6. In the Proposition section, ensure Age Check proposition is selected.
   Note: Notice that the proposition inherits from the default criteria and is evaluated as true by default.

7. On the Default criteria tab, in the Group level criteria section, confirm that the As true (Propositions are valid) option is active.
8. On the Specific criteria tab, in the Proposition section, click the Employment Status Check proposition to inspect the and condition.
   Note: In the Current customer data context of the Rule, the proposition uses the Employment Check When Rule, which returns false when the customer is unemployed, and the Filter component outputs the Employment Status Check proposition as all conditions are met.

9. Close the Eligibility Check Consumer Proposition filter.
10. Click Submit to close the Filter properties window.
11. In the upper-right corner, click Save.
    
12. In the navigation pane, click Home, and then, in the My Worklist section, click Credit risk strategy to open the change request.
13. In the Scope of changes section, click Employment Check to open the When Rule.
    
    Note: The When rule returns true when the value of the EmploymentStatus property is not equal to UNEMPLOYED.

Confirm your work

1. In the Scope of changes section, click Credit Offers to open the decision strategy
2. Open the Test run pane to test the completed Credit Offers decision strategy:
   1. In the Settings section, select Data set.
   2. In the Data set field, enter or select SimulationSetDDS.
   3. In the Customer ID field, enter or select Customer433.
   4. Click Save & Run.
   5. Click the Results component.
      
   6. In the Test run pane, click the Next button to cycle through the pages.
   7. Notice the Business Issue, Group and Name properties of the different outputs of the three different flows.
      Tip: Test with different customers. What rules are preventing or causing them to receive more or fewer decisions than other customers?

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This Challenge is to practice what you learned in the following Module:

• Extending the Credit Offers Decision Strategy v1

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Available in the following mission:

• Credit Risk Decisioning v2