DataRobot Case Studies Harmoney and DataRobot Drive Innovation in Australasia’s Personal Loan Market

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	Harmoney and DataRobot Drive Innovation in Australasia’s Personal Loan Market DataRobot

Harmoney and DataRobot Drive Innovation in Australasia’s Personal Loan Market

DataRobot

Technology Category	Analytics & Modeling - Machine Learning
Applicable Industries	Finance & Insurance
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Fraud Detection
Services	Data Science Services
Challenge	Harmoney, a marketplace lending platform in Australasia, was facing the challenge of keeping pace with the constant innovation required to stay ahead of big banks. The company's small team of data scientists was tasked with the development and deployment of machine learning models to improve the efficiency of the personal loans market. However, the team was finding it difficult to dedicate sufficient time to predictive analytics due to their other responsibilities. Additionally, the traditional tools they were using for modeling were time-consuming and often led to distractions from the main goal of improving the business. Read More
About Customer	Harmoney is Australasia’s leading marketplace lender, challenging the dominance of big banks in the personal loan market. The company operates a platform that matches borrowers with lenders without the need for a financial intermediary, aiming to deliver greater efficiency to the market. About 60 percent of Harmoney's staff are engineering and data science professionals, and the company can be viewed as a technology company. The company operates in a highly competitive market, with personal loans comprising about 4 percent of the banks’ balance sheets while generating about 16 percent of net profits. Read More
Solution	Harmoney turned to DataRobot to automate the development and deployment of machine learning models. DataRobot provided a single integrated environment that supported both model development and model deployment, enabling the data science and IT engineering teams to create effective models and accelerate their deployment into operational systems. The use of machine learning improved the accuracy of credit risk assessments, which in turn increased profitability by reducing defaults. Furthermore, Harmoney was able to reduce the number of questions asked to borrowers during the credit application process, thereby accelerating the decision-making process and reducing the dropout rate. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Machine Learning

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Fraud Detection

Services

Data Science Services

Challenge

Harmoney, a marketplace lending platform in Australasia, was facing the challenge of keeping pace with the constant innovation required to stay ahead of big banks. The company's small team of data scientists was tasked with the development and deployment of machine learning models to improve the efficiency of the personal loans market. However, the team was finding it difficult to dedicate sufficient time to predictive analytics due to their other responsibilities. Additionally, the traditional tools they were using for modeling were time-consuming and often led to distractions from the main goal of improving the business.

About Customer

Harmoney is Australasia’s leading marketplace lender, challenging the dominance of big banks in the personal loan market. The company operates a platform that matches borrowers with lenders without the need for a financial intermediary, aiming to deliver greater efficiency to the market. About 60 percent of Harmoney's staff are engineering and data science professionals, and the company can be viewed as a technology company. The company operates in a highly competitive market, with personal loans comprising about 4 percent of the banks’ balance sheets while generating about 16 percent of net profits.

Solution

Harmoney turned to DataRobot to automate the development and deployment of machine learning models. DataRobot provided a single integrated environment that supported both model development and model deployment, enabling the data science and IT engineering teams to create effective models and accelerate their deployment into operational systems. The use of machine learning improved the accuracy of credit risk assessments, which in turn increased profitability by reducing defaults. Furthermore, Harmoney was able to reduce the number of questions asked to borrowers during the credit application process, thereby accelerating the decision-making process and reducing the dropout rate.

Impact #1	Harmoney was able to accelerate borrowers through the credit application and reach a decision faster.
Impact #2	The company was able to lower the price of loans it offers, expressed as the interest rate individual borrowers are charged based on their risk score.
Impact #3	Harmoney was able to win an increasing share of a highly competitive market.

Impact #1

Harmoney was able to accelerate borrowers through the credit application and reach a decision faster.

Impact #2

The company was able to lower the price of loans it offers, expressed as the interest rate individual borrowers are charged based on their risk score.

Impact #3

Harmoney was able to win an increasing share of a highly competitive market.

Benefit #1	Harmoney reduced the number of questions asked to borrowers during the credit application process.
Benefit #2	The company's innovation resulted in better value for borrowers and a low default risk for lenders.
Benefit #3	Harmoney's net interest margins (NIMs) on personal loans are significantly lower than those of traditional banks.

Benefit #1

Harmoney reduced the number of questions asked to borrowers during the credit application process.

Benefit #2

The company's innovation resulted in better value for borrowers and a low default risk for lenders.

Benefit #3

Harmoney's net interest margins (NIMs) on personal loans are significantly lower than those of traditional banks.

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Overview

Harmoney and DataRobot Drive Innovation in Australasia’s Personal Loan Market

Operational Impact

Quantitative Benefit