The Solution: Credit Management Platform

Implementation and Use of Credit Decisioning Models

With the Credit Management Platform, Innovations offers a transparent and flexible way of implementing and maintaining credit decision models.  The platform has a component-based architecture, which is depicted in the following figure.

Model Authoring Platform

The Model Authoring Platform is the central component for implementing and maintaining credit-related decisioning, presentation, process and integration models. It provides a particularly intuitive approach to modeling complex, user-defined logic. The graphical representation is intuitive, corresponding to the human way of thinking, and is particularly suited for business experts. Executable program code (Java) is generated from the models and available for analytical use in the credit management process.

Team Server Model Repository

Rule models created in the Model Authoring Platform are deposited and administered in the Team Server, a central rule repository. Consequently, several model administrators can modify credit decisioning models at the same time. All changes are logged so that a prior version can be restored later if needed. It also records "who" made "what" change "when". Logic and structural changes can be displayed in a graphical comparison view.

Credit Manager

The Credit Manager is a web-based system for processing credit applications. It supports both fully and partially automated credit processes, including manual underwriting. Its user interfaces, processes, rating and scoring models, and integration logic are based on the models defined in the Model Authoring Platform.

The Credit Manager supports analytical credit management which can be utilized by simulating the modified credit decisioning models prior to deployment, for example by applying them to historical data. Reports compare historic and simulated runs, which permit impact analysis. Simulations can be based on modified (stressed) risk factors in addition to modified decisioning models. 

Credit Database

All internal and external input and output data are stored in an auditable database that complies with all regulatory requirements such as Basel II. The Credit Database has a dynamic data schema which allows additional information, such as manually collected or externally supplied data to be stored without modification. Any number of revisions can also be stored to ensure fully auditable processing of credit applications.

Interfaces

The Credit Management Platform can be integrated with a company’s existing internal databases and with third-party systems (such as banking applications) to enable bi-directional data exchange. External data suppliers can also be integrated with the platform. A large number of interfaces are available for worldwide connection to credit bureaus.

Integration with Existing Systems

Credit application processes require integration with multiple internal and external systems. At the beginning of the process, this comprises input data such as customer information, financials-, and credit reporting information, as well as delivery of the resulting output data. The following figure depicts typical systems that are involved.

In addition to integration with third-party systems in the credit application process, the Credit Management Platform can be called and integrated through an inbound interface (Remote API). Such a call can be synchronous (such as using a web service) or asynchronous (such as using JMS). Credit applications can be submitted by any system to the Credit Management Platform. The interface makes the following functionalities available, among others:

• Creating credit applications
• Data transfer (for instance, credit application data)
• Calling the process model that controls the overall credit process:
  
  • Calling credit decisioning logic, including external service calls
  • Generating items for work lists
  • Data persistence
  • State conditions and transitions
• Delivery of the resulting output such as scores, rates and credit decision

Technology for Credit Applications

• The market-leading rule software, Visual Rules, featuring a graphical modeling approach based on Eclipse IDE
• Dynamic Application Framework for maximum flexibility
• Comprehensive security management to administer users, roles and groups, and to connect to existing user management systems such as via LDAP
• Multi-lingual and country-specific versioning capabilities
• A role-based deployment process with quality assurance
• Ad hoc and batch processing of credit applications
• Java EE web application ensures parallelism (multi-user-execution) and scalability
• A browser-based application for end-users
• Hot swap API for exchanging credit decisioning models during runtime without downtime
• Open interface architecture ensures seamless bi-directional integration into existing systems
• The platform can be operated in the customer’s infrastructure or as a hosted service (ASP or SAAS model)