C5i Case Studies Improving Loan Origination Process with Risk Analytics

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	Improving Loan Origination Process with Risk Analytics C5i

Improving Loan Origination Process with Risk Analytics

C5i

Technology Category	Analytics & Modeling - Predictive Analytics Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Finance & Insurance
Applicable Functions	Procurement
Use Cases	Predictive Quality Analytics Regulatory Compliance Monitoring
Services	Data Science Services System Integration
Challenge	The client, a US-based auto finance company, was approving all loan applications at the origination stage. They desired to build a new risk-based loan application analytics solution to better understand their existing customers and manage risks, profitability, and growth more effectively. The challenge was to profile, model, extract, and automate data into one repository for the loan origination process. This included statistical evaluation of the borrowers’ characteristics, risk-based pricing model based on the riskiness of the customer, and real-time decision-making application for monitoring performance, decision support, and automated scoring of customers. Read More
About Customer	The customer is a US-based auto finance company. They are in the financial services industry and have a large scale operation, with over 1,000 employees. The company was facing challenges in managing risks, profitability, and growth due to their existing practice of approving all loan applications at the origination stage. They desired to build a new risk-based loan application analytics solution to better understand their existing customers and manage their portfolio more effectively. Read More
Solution	Blueocean Market Intelligence provided a comprehensive solution to the client's challenges. They profiled, modelled, extracted, and automated data into one repository for the loan origination process. This included a risk score/risk segmentation for statistical evaluation of the borrowers’ characteristics, a risk-based pricing model based on the riskiness of the customer, and a real-time decision-making application for monitoring performance, decision support, and automated scoring of customers. They also built APIs to connect to multiple data sources and used the information to make decisions in real time. Additionally, they created a performance management solution where key KPIs and metrics were tracked to understand how the overall portfolio is doing. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Finance & Insurance

Applicable Functions

Procurement

Use Cases

Predictive Quality Analytics

Regulatory Compliance Monitoring

Services

Data Science Services

System Integration

Challenge

The client, a US-based auto finance company, was approving all loan applications at the origination stage. They desired to build a new risk-based loan application analytics solution to better understand their existing customers and manage risks, profitability, and growth more effectively. The challenge was to profile, model, extract, and automate data into one repository for the loan origination process. This included statistical evaluation of the borrowers’ characteristics, risk-based pricing model based on the riskiness of the customer, and real-time decision-making application for monitoring performance, decision support, and automated scoring of customers.

About Customer

The customer is a US-based auto finance company. They are in the financial services industry and have a large scale operation, with over 1,000 employees. The company was facing challenges in managing risks, profitability, and growth due to their existing practice of approving all loan applications at the origination stage. They desired to build a new risk-based loan application analytics solution to better understand their existing customers and manage their portfolio more effectively.

Solution

Blueocean Market Intelligence provided a comprehensive solution to the client's challenges. They profiled, modelled, extracted, and automated data into one repository for the loan origination process. This included a risk score/risk segmentation for statistical evaluation of the borrowers’ characteristics, a risk-based pricing model based on the riskiness of the customer, and a real-time decision-making application for monitoring performance, decision support, and automated scoring of customers. They also built APIs to connect to multiple data sources and used the information to make decisions in real time. Additionally, they created a performance management solution where key KPIs and metrics were tracked to understand how the overall portfolio is doing.

Impact #1	Built APIs to connect to multiple data sources and used the information to make decision in real time.
Impact #2	Blueocean Market Intelligence lending portal helped in monitoring performance and decision support through a set of dynamic reports.
Impact #3	Creation of acquisition scorecard and risk based pricing model helped to decide on the discount amount for each loan application.

Impact #1

Built APIs to connect to multiple data sources and used the information to make decision in real time.

Impact #2

Blueocean Market Intelligence lending portal helped in monitoring performance and decision support through a set of dynamic reports.

Impact #3

Creation of acquisition scorecard and risk based pricing model helped to decide on the discount amount for each loan application.

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Overview

Improving Loan Origination Process with Risk Analytics

Operational Impact