The document outlines a three-step approach to modernizing the credit approval process, which includes adopting a credit scoring strategy, automating decision policies, and processing online applications. Key benefits of this approach aim to enhance customer experience, improve resource efficiency, and expedite approval times. Additionally, the integration of systems using APIs is recommended to streamline data management and reduce security risks.

1. 1 © Experian 25/10/2019
Sip and Solve
Modernize your credit approval
process in 3 simple steps
Featuring:
Erikk J. Kropp
Senior Product Manager
Experian Business Information Services

2. 2 © Experian
Credit approval process
Core Function:
• Define and identify risk
• Facilitate risk-based credit decisions
− Approve low risk customers
− Review medium risk customers
− Decline high risk customers
Sip and Solve: Modernize your credit approval process in 3 simple steps

3. 3 © Experian
Market drivers
Maximize
resource
efficiency
Enhance
customer
experience
Expedite
credit
approvals
Increase
application
volume
Credit
approval
process
Improve
workflow
process
Drive
consistent
results

4. 4 © Experian
Path to modernization
Credit Data
Scores &
Analytics
Auto
Decisioning
Online
Application
processing
System
Integration
You are here
Destination
here
Sip and Solve: Modernize your credit approval process in 3 simple steps

5. 5 © Experian
Path to modernization
Credit Data
Scores &
Analytics
Auto
Decisioning
Online
Application
processing
System
Integration
You are here
Destination
here
Sip and Solve: Modernize your credit approval process in 3 simple steps

6. 6 © Experian
Step 1: Adopt a credit scoring strategy
Key Impacts:
• Quickly assess risk and take action
• Avoid slow, manual evaluation
• Focus resources on medium risk
• Multiple score types to consider
– Generic / All-Industry
– Custom Model
– Judgmental
Decline 10% of applicants
50.82% bad rate
Approve 10% of applicants
1.25% bad rate
Manual Review 80% of applicants
8.04% bad rate
Sip and Solve: Modernize your credit approval process in 3 simple steps

7. 7 © Experian
Step 2: Automate decision policies
Credit Policy Actions
Key Impacts:
• Turn risk assessment into an action strategy
• Centralize and standardize your process
• Reduce turnaround and increase processing capacity
Credit Policy Automation
AttributesData Decisions ActionsScores

8. 8 © Experian
Key Impacts:
• Quickly build and deploy online forms
• Automate application processing
– Capture
– Archiving
– Decisioning
– Messaging
• Offer instant credit at POS
– Speed to revenue
– Customer experience
• Little to no IT resources required
Step 3: Process online applications

9. 9 © Experian
Bonus Step: Integrate systems using APIs
• An Application Programming Interface (API) enables
the integration of data and services between systems.
• Companies with existing processes and systems may
want to leverage an API connection.
- Avoid redundant systems, logins and security
risks
- Enable availability of data and services in a
central platform for added efficiency and ease of
use
- Kickoff additional automation and programs
Sip and Solve: Modernize your credit approval process in 3 simple steps

10. 10 © Experian
Parting Thoughts
Credit Data
Scores &
Analytics
Auto
Decisioning
Online
Application
processing
System
Integration
• Breathe!
• Be realistic!
• Leverage the framework
• Start with the basics
• Seek the right partner(s)
Sip and Solve: Modernize your credit approval process in 3 simple steps

11. 11 © Experian 25/10/2019
Thank you!
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approval process?
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