You know one of the most important parts of your lending process is the customer experience.
Customers today value speed and convenience over all else. If you can’t seamlessly provide a loan, they will continue to look for a lender who meets their expectations of the digital lending experience.
The industry is rapidly evolving with new technology. To make finding the right decision engine easier, we have compiled a list so you can see if it’s time for you to upgrade your systems. This list will help you to create a better customer experience and start meeting customers’ expectations.
Your Decision Engine
The right decision engine is a critical component of your business processes in online lending.
A good decision engine underwrites your loans in real-time using your custom decisioning parameters while protecting your business from risk and fraud.
At a minimum, your decision engine should have real-time decisioning, access to customer data through traditional, and alternative credit bureau data. Additionally, your decision engine should adhere to compliance and underwriting rules.
Outside of the basics of a decision engine, what else should you look for?
Below are three other key aspects you should consider during your evaluation.
You shouldn’t have to wait for technology to work for you. With the right partner, implementing a new decision engine should be completed within 90 days or less.
The decision engine you select should have the pre-built integrations and APIs you need on day one. This includes all data sources and other connections you require to run your business. It should be seamless. You should only have to bring your credentials and the integrations are already established.
Your decision engine should be adaptable. Want to add new portfolios or implement new credit policies? Your time to test should take weeks, not months. Even better, if you’re able to copy and paste credit policies, you can start using your decision engine without hours of tedious development work.
Risk, fraud, and propensity scores
Every lending segment has different levels of risk tolerance and fraud mitigation techniques. For example, prime auto lending is vastly different from non-prime personal loans. Your decision engine should give you sophisticated scores creating in and for your particular segment.
These scores reduce your exposure to losing money by mitigating risk and fraud before it starts. Additionally, accurate scoring will focus your marketing dollars on the right customers.
Whether you have a large lending portfolio or are starting to lend online, adding these risk management processes to your application flow will direct your efforts to earn and save the most money. Your business won’t have any option but to grow.
You need the ability to perform multiple tests on all kinds of dimensions with unlimited variables. You’ll want to configure loan amounts, APRs, payment terms, champion/challenger strategies, and much more. This helps you approve, decline, or review decisions and implement risk-based pricing as needed.
Your decision engine should be able to host unlimited segments, like multiple brands and channels, former customers, and locations. Additionally, you should be able to configure each variable.
This way, you can offer optimal terms and tailor each decision based on the parameters you require.
Your decision engine should equip you to make your customers’ experience easy. If your decision engine is currently only meeting the bare minimum, your business won’t grow in the future. If your decision engine is lacking in these areas, start looking for a better decision engine today.
Equipping your business with better technology
After reading over this article, you may realize your customer journey is being hindered by your decision engine. Your digital experience can be a massive competitive advantage in financial services. Unfortunately, many financial institutions don’t have the technology to provide the digital services needed today.
If you feel your technology has fallen behind, we understand your pain.
We at Vergent LMS and iQDE were lenders like you. We believe you should have the tools you need to better your customer experience and equip your business to thrive. That’s why we partnered to provide you the effective systems you need. We have measured ourselves against this list to ensure we are providing you with the right technology to equip your growth.
When you have the proper technology to support your customers, customer satisfaction and your revenue will never be higher.
You know you need a better customer experience. Request a demo today to see how we can equip you with the tools you need to make any loan, any time, anywhere.