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DM Challenge – Dynamic Loan Evaluation


Written by: Carole-Ann BerliozPublished on: Jun 19, 2020No comments

dynamic loan approvedLet’s take on another challenge from the Decision Management community. The Dynamic Loan Evaluation challenge looks very applicable to what our customers do. In this scenario, the business logic is very simple, but data is uncovered over time. As a result, the underwriting decision changes each time new information comes to light. Overall, this project illustrates the combination of a point decision, the loan origination, and a changing series of facts.
Click here to watch the demo

dynamic loan declined

Key takeaways from this dynamic loan evaluation challenge

The business rules behind this loan evaluation do not present much difficulties. While a real system typically includes many eligibility criteria, this evaluation relies solely on a risk exposure measurement. If the assets exceed the obligations, we approve the loan. However, if the obligations exceed the assets, we decline the loan.

As assets and debt gets uncovered, the balance tips from one side to the other. While this feels like a dynamic interaction, I prefer to design loan origination systems as stateless services. This means that you expose all the information available, and the business rules render the verdict. In short, the decision service does not keep track of the history.

On the other hand, the origination system must handle the dynamic aspect of the loan. In this challenge, I use a dynamic questionnaire to capture the data. The dynamic questionnaire collects all borrower and guarantor information over time. As the loan agent, I append the new facts to the in-flight application, and submit the whole thing for evaluation.

I like to separate cleanly the business logic from the questionnaire logic. This project illustrates this design perfectly.
Click here to watch the demo

If you want to try building the demo by yourself, feel free to ask for a free evaluation.

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