Credit Decisioning Software Companies

Introduction

Credit decisioning software helps a company determine whether to approve or decline a loan applicant. The software typically contains a set of algorithms that automatically review information such as a credit score, payment history, and other relevant data to make a decision. The information that goes into the decision is usually transparent, but can sometimes be proprietary to the company that developed the decisioning software. The goal of credit decisioning software is to save companies time and money, allowing them to provide better service to their customers.

Additionally, it helps lenders predict the risk of approving a loan application, and then automatically assesses the risk of denying a loan. The software looks for signals in a borrower’s credit report, such as the type and amount of credit history, and other factors, like employment, income, and assets. The software can also take into account information about the applicant, such as demographic data and the type of loan application. A denial decision is often the result of a machine learning algorithm, which is a set of rules that help the software make predictions.

Features of Credit Decisioning Software

Credit Score

The most common feature of credit decision software is the credit score. It is the number that represents a person’s credit risk. The majority of credit decision software uses a credit score to make decisions. The credit score is the most important feature in a person’s credit report.

Multiple Decisioning Parameters

The multiple decisioning parameters features have been designed to approve, decline, or review decisions based on several different factors, including configuring payment terms, APRS, and configuring multiple loan amounts. This software feature is also created to implement risk-based pricing.

Compliance Adherence

The compliance adherence feature has been created with a variety of functions in mind. More importantly, it is audit and compliance friendly. Therefore, it gives underwriters and decision makers the capability to trace every change, and is designed with transparency of underwriting decisions in mind.

Instant Decisioning

The instant decisioning feature has been designed with real-time decisioning capabilities, and it really does not matter how complex the decision logic may be. With the use of this feature, it is a scalable process that incorporates a single API call for millions of real-time transactions.

Benefits of Credit Decisioning Software

IQ Risk and Fraud Scores

IQ risks and fraud scores feature have been designed to evaluate the risk potential in advance. This feature has been programmed to identify the most lucrative customer relationships, while also detecting and preventing any types of fraud before they happen.

Improved Efficiency

It also provides feature to collect waterfall decisioning information for a company’s price efficiency. This also takes into account automated exceptions handling and gives the company the capability to integrate their decision software platform with existing web apps, loan management and data platforms.

Simple to Advanced Scoring Models

It can be used for both simple to advanced scoring models, including SAS, Python, and AI learning machines like Random Forest.