Credit Risk sample application overview

The user interface of the credit risk sample application effectively presents these integrated results, facilitating well-informed decisions by credit managers.

The what-if page is divided into two main sections: the Credit Customer section and the Credit Risk Results section.

The Credit Customer section displays essential customer information such as CustomerID, the requested product, Date of Birth, Marital Status, Total Income, and Total Expenses. This section helps users understand the financial and personal background of the customer.

Decision strategies enable data-driven, real-time decision-making to choose the most suitable action for a specific context. The strategy canvas, a business-friendly tool, allows building complex decision logic ideal for credit risk. A decisioning engine powers this process, executing whenever a new applicant is evaluated.

The Credit Risk Results section displays the outcomes of the Credit Risk Output decision strategy, including the final decision, product information, and credit scores.

These outputs are specific to this sample application. In a real-life credit risk decisioning application, the outputs are fully customizable to meet business requirements.

When you run a new test, the application calls the Credit Risk Output strategy and displays the results.

The Credit Risk Output strategy evaluates and proposes suitable credit products to customers. This strategy sources Credit Offers, Credit Eligibility, and Credit Score from the external Credit Offers sub-strategy, and reaches a final decision.

Test the strategy with a simulation Data Set to verify the outputs for different customers and notice the number of decisions for the components as you change the customer ID.

For example, for Customer11 the Student Loan is approved as the customer is eligible for it.

However, Customer104 is not eligible for the requested offer, but an alternative offer is available, and the loan application requires further investigation.

The Loan Origination Decision Consumer strategy makes the final Decision about whether to approve or decline a loan application for a customer and provides the Decision results to the requesting system. If the result is an approval, the strategy determines which offers the customer gets.

This strategy is composed of three main flows: Credit Offers, Credit Eligibility, and Credit Score.

The Credit Offers flow

The Credit Offers flow begins by importing cash loan propositions and setting properties based on customer data, such as age and eligibility.

These properties are calculated to determine the suitability of various credit offers.

Eligibility rules are applied using decision tables and filters to ensure only the most appropriate offers are considered.

The strategy then prioritizes the remaining eligible offers based on business criteria like offer amount and customer preferences.

This prioritization helps in selecting the best possible offers for each customer, ensuring they receive tailored and relevant loan options.

The Credit Score flow

The Credit Scores flow assesses the customer's creditworthiness using internal scoring models and external credit bureau data.

A scorecard model calculates scores based on factors like marital status, employment duration, and financial history.

These scores are crucial for evaluating the risk associated with lending to a particular customer. By combining internal scores with credit bureau scores, the strategy provides a comprehensive risk profile.

The Credit Eligibility flow

The Credit Eligibility flow evaluates whether a customer meets the predefined criteria to receive credit offers. This involves checking various aspects such as minimum income, employment status, and credit history against business rules and credit policies.

The Credit Offers flow begins by importing The Credit Eligibility sub-strategy aggregates the results to confirm if all eligibility rules are met and documents reasons for any ineligibility. This comprehensive evaluation ensures maintaining compliance with credit policies.

The Credit Risk Output strategy leverages the insights from the three flows of the Loan Origination strategy to make final loan decisions. It imports the prioritized credit offers, eligibility checks and credit score from the Credit Offers flow.

It aggregates this data using Group By components to create a full profile of the customer, ensuring all aspects of eligibility and creditworthiness are considered. A Decision Table component evaluates the aggregated data to decide whether to approve or decline the loan application.

This decision is based on conditions mapped from the Group By components, ensuring that all relevant information is considered.

The final output includes detailed information about the credit offer and eligibility. The Filter component ensures that only approved offers are presented in the final decision.

By integrating detailed customer data, sophisticated scoring models, and eligibility checks, the Credit Risk Output decision strategy ensures a robust framework for credit decision-making. This comprehensive approach ensures precise and compliant credit evaluations, aligned with business requirements.