Modernizing the credit approval process in 3 simple steps - Sip and Solve
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The document outlines a three-step approach to modernizing the credit approval process, which includes adopting a credit scoring strategy, automating decision policies, and processing online applications. Key benefits of this approach aim to enhance customer experience, improve resource efficiency, and expedite approval times. Additionally, the integration of systems using APIs is recommended to streamline data management and reduce security risks.
Modernizing the credit approval process in 3 simple steps - Sip and Solve
- 1. 1 © Experian 25/10/2019 Sip and Solve Modernize your credit approval process in 3 simple steps Featuring: Erikk J. Kropp Senior Product Manager Experian Business Information Services
- 2. 2 © Experian Credit approval process Core Function: • Define and identify risk • Facilitate risk-based credit decisions − Approve low risk customers − Review medium risk customers − Decline high risk customers Sip and Solve: Modernize your credit approval process in 3 simple steps
- 3. 3 © Experian Market drivers Maximize resource efficiency Enhance customer experience Expedite credit approvals Increase application volume Credit approval process Improve workflow process Drive consistent results
- 4. 4 © Experian Path to modernization Credit Data Scores & Analytics Auto Decisioning Online Application processing System Integration You are here Destination here Sip and Solve: Modernize your credit approval process in 3 simple steps
- 5. 5 © Experian Path to modernization Credit Data Scores & Analytics Auto Decisioning Online Application processing System Integration You are here Destination here Sip and Solve: Modernize your credit approval process in 3 simple steps
- 6. 6 © Experian Step 1: Adopt a credit scoring strategy Key Impacts: • Quickly assess risk and take action • Avoid slow, manual evaluation • Focus resources on medium risk • Multiple score types to consider – Generic / All-Industry – Custom Model – Judgmental Decline 10% of applicants 50.82% bad rate Approve 10% of applicants 1.25% bad rate Manual Review 80% of applicants 8.04% bad rate Sip and Solve: Modernize your credit approval process in 3 simple steps
- 7. 7 © Experian Step 2: Automate decision policies Credit Policy Actions Key Impacts: • Turn risk assessment into an action strategy • Centralize and standardize your process • Reduce turnaround and increase processing capacity Credit Policy Automation AttributesData Decisions ActionsScores
- 8. 8 © Experian Key Impacts: • Quickly build and deploy online forms • Automate application processing – Capture – Archiving – Decisioning – Messaging • Offer instant credit at POS – Speed to revenue – Customer experience • Little to no IT resources required Step 3: Process online applications
- 9. 9 © Experian Bonus Step: Integrate systems using APIs • An Application Programming Interface (API) enables the integration of data and services between systems. • Companies with existing processes and systems may want to leverage an API connection. - Avoid redundant systems, logins and security risks - Enable availability of data and services in a central platform for added efficiency and ease of use - Kickoff additional automation and programs Sip and Solve: Modernize your credit approval process in 3 simple steps
- 10. 10 © Experian Parting Thoughts Credit Data Scores & Analytics Auto Decisioning Online Application processing System Integration • Breathe! • Be realistic! • Leverage the framework • Start with the basics • Seek the right partner(s) Sip and Solve: Modernize your credit approval process in 3 simple steps
- 11. 11 © Experian 25/10/2019 Thank you! Have questions or want to learn more about ways to modernize your credit approval process? • Chat with us: bit.ly/sip-solve-chat Upcoming Sip and Solves - • Join the list to stay in the loop: bit.ly/sip-and-solve