Risk and Compliance

Digital self-service leads to more applicants, with up to 90 percent of credit requests and up to 50 percent of deposit account requests being non-viable. This can quickly overwhelm staff. Using intelligent decisioning to process applications before passing them to staff reduces labor costs. Automation enables consistency in process, improves customer experience with a faster response for system approvals and denials, facilitates adherence to business policies, and ensures compliance with regulations.

Automation improves the analysis of the applicant, credit, debt obligations, collateral, and the execution of the institution’s policies. It calculates the proposed loan payment, APR, and ratios, and derives custom credit scores. Based on this, the solution assigns pricing based on product, terms, collateral, debt, and ratios. It uses the lender’s credit policies, business rules, and customer value. This process meets the needs and risk appetite of the institution and eliminates banker bias.

Automation provides:

• Consistent inputs
• Compliant processes and calculations
• Accurate risk-based pricing
• Consistent warnings for policy exceptions
• Predictable decisions and outcomes with greater speed and efficiency

Customer- and account-level due diligence enables risk mitigation and ensures compliance. Detect and prevent fraud with a system that combines what you know with third-party and government data to validate, verify, and authenticate your customers.

Automation generates disclosures to ensure regulatory compliance for all product types. For example, it ensures HMDA information is gathered and complete at the time of application and at closing, so the FI can maintain, report, and disclose loan-level information about non-excluded mortgages. It generates timely TILA-RESPA Integrated Disclosures (TRID) when needed. It ensures paperless processing and that e-Signature-eligible documents are properly signed. These are just a few of the many ways in which it ensures compliance for proper disclosure, audit, and proof of process.

Based on analysis, automation classifies each loan request into one of five categories – approved, recommend approve, review, recommend decline, or declined. It routes approved applications to fulfillment processing, triggers adverse action notices for declined requests, and sends the rest to skilled and authorized underwriters for review.

Deposit decisioning generates three outcomes:

1. Auto approvals: Boarded to the host.
2. Auto declines: Triggers notice of action.
3. Reviews: Routed to a banker for judgment review. These include all the supporting documentation for adjudication to an approved or declined decision and the appropriate notification to the applicants.

If an application needs additional review, workflow routes it to the right deposit or loan operations team for manual review. Workflow routes and prioritizes each unit of work to the right person or team. Streamlined workflow eliminates manual routing of deals, improves efficiencies, and reduces customer response times. Tracking against Service Level Agreements (SLAs) reduces customer frustration and attrition risk. When SLAs approach or exceed thresholds, it notifies leadership.

Management insight KPIs equip leaders to monitor, review, and adjust decisioning rules such as ratios for high- and low-side override, system vs. staff decisioning, look-to-book, triggered rule, and supporting analysis at both the macro and micro levels. KPIs empower ongoing rule analysis and recalibration.