For credit decisioning, we would have to establish a comprehensive risk engine. This should have machine learning to support improvement over period of time.
Credit Engine platforms across most banks are part of legacy issue.. The challenges faced are:
– They do not accept social data for credit decisioning.
– They do not have APIs for integration with Customer Onboarding Systems or with Lending Systems. Many of these platforms do not go much beyond CIBIL wrt integration.
– They do not support automated processes in general.
– They do not provide Real Time Credit Decisioning, which is key for e-Commerce customer transactions.
– They do not support complete range of lending products across segments.
Potential options for the bank are:
– Custom built the platform for specific set of products (Fintechs are doing it anyway!!!)
– Partner with Digital Decisioning Platforms that are offering partnership with banks. These platform providers offer white label solutions.
– Partner with standalone new gen credit decisioning engines
– Partner with Fintechs with powerful decision engines
More details in next part…
