Digital Disruption in Financial Services
Digital disruption is at the top of every financial institution (FI) CEO’s agenda in 2017. What aspects of their business need to be digitally transformed in order to leap from the competition?
Credit risk management is ripe opportunities for digital disruption. First, credit risk decisions directly impact the bottom line. Second, credit risk management has always been a data-driven discipline. Third, market dynamics are accelerating because of digital. Therefore, relying solely on the historical performance indicators is no longer enough. Today’s conditions are already very different from yesterday’s. Not only do FIs need to eliminate inconsistent approaches that expose them to unnecessary risk, they need a systematic approach that continuously integrates new data sources and credit-scoring strategies. Leveraging the latest analytics technique and technologies enables FIs to both lower costs and gain additional revenue.
Managing Credit Risk through Equifax Decision Management
FIs can disrupt credit risk management through decision management. Increasingly complex data can be managed through business rules and an agile framework. This is why Equifax decision management, powered by Sparkling Logic, is helping FIs gain an competitive edge. Equifax InterConnect is a cloud-based solution that “automates account opening, credit-risk decisioning, cross-selling and fraud mitigation during the account acquisition process.” In 2016, Equifax was looking for ways to help their customers capture new opportunities in credit risk management by strengthening one of InterConnect’s core components, the Rules Editor.
Equifax customers wanted more functionality in defining, testing and optimizing business rules based on real-time results. Equifax turned to Sparkling Logic as a key partner to fulfill these requirements. Through Sparkling Logic SMARTS™ capabilities, Equifax was able to transform their Rules Editor and empower their clients to be more nimble. For example, FI’s can now run Champion/Challenger experiments on multiple credit decisioning strategies during both development and production. Real-time decision analytics enable FIs to monitor business performance and move forward with the winning strategy.
Learn more about Equifax by viewing our joint-webinar, “How Equifax is Helping Credit Lenders Leap Frog the Competition,” or by reading the Equifax Customer Story.