How to best leverage a Credit Decisioning Engine or Business Rule Engine to simplify automation in underwriting?

26th April 2023

In today's fast-paced world, Banks and other financial institutions are constantly striving to find new ways to simplify and automate their credit underwriting process to bring in significant benefits, both in terms of efficiency and accuracy. Today, close to about 40% of the loan life cycle in spent in manually underwriting an SME loan application. However, frequent changes to credit policies due to regulatory compliance, rapidly varying bank’s risk appetite, competitive landscape, and other external factors, coupled with the need to manage risk exposure, can make this a daunting task.

This is a challenge for both, traditional and even the new-age digital lenders. Achieving an efficient mechanism to maintain and update their credit underwriting policies is critical for any lender to survive in the business and expand their portfolio. For this reason, financial institutions are often looking for deep expertise in credit risk and simplifying the process of taking well informed credit decision along with the capability of building and rolling out a flexible credit decisioning infrastructure to Go to Market rapidly.

This is where Perfios Credit Decisioning Engine comes in – A robust, scalable, configurable, no-code platform with an intuitive user interface with self-service configurable modules for the underwriters to create, adjust and manage credit policies to make real-time fully automated credit decisions.

It offers 5 major capabilities which makes configuring credit policies seamless and automate the decision-making process:

Integrate with plug-and-play APIs: Perfios' Credit Decisioning Engine can be integrated as plug-and-play APIs making it easy for institutions to incorporate the engine into their existing workflows. It comes pre integrated with multiple traditional and alternate data sources which includes demographic data verification, residence & work-related data, financial history of the customer, Transactional data etc. to derive a comprehensive multi-dimensional profile of a customer.

Flexible workflows: Perfios CDE facilitates one or more decision flows for every loan product/program that can be configured. Each consuming all the relevant information from multiple data source to provide a lending decision as output. Perfios CDE also can run a champion challenger model to compare two different approaches of underwriting a customer and then choose the one that best fits the FI.

Define Rules, variable & score cards: Perfios CDE can build simple to complex "Approve" or "Deny" credit policy rules using multiple rule builders to separate complex criteria into simple manageable sections. It also provides a flexibility to create any number of simple to complex variables to perform mathematical calculations which can be incorporated into any one of the rules/ score card/ decision matrices. Variables can be devised out of the existing data points available from the integrated data sources. Perfios CDE also has a capability of creating a weighted mean scorecard using all the accessible datapoints for the end user to predict the likelihood of the applicant defaulting on their loan.

Credit decision output: Perfios CDE allows the underwriter to define (Approve/Reject/ Review) criteria for STP journeys based on any combination of variables and conditions to arrive at the final lending decision.

Analytics: Perfios CDE comes with real time analytics to monitor the portfolio performance, track workflow performance over time to optimize the existing credit strategies for better conversions.

With Perfios CDE integrated into the existing infrastructure, FIs are able to reduce the overall cost per funded loan which was high due to inefficient lead screening and increase the number of loans processed. It significantly reduces the time and resources required to process loan applications, reduce operational costs, and minimize the risk of errors.

Feel free to reach out to for more information and demo of the Perfios Credit Decision Engine.

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