Along with supporting lending origination and underwriting across digital channels, a bank’s chosen solution should also house industry-standard rules and bank policies. This includes attributes for loan applications, credit and debit ratios and calculations, pricing, compliance, business rules, and decisioning criteria. A robust solution can leverage these configurable criteria to automate decisions in real-time, while loans can be manually reviewed by underwriters if needed. In either case, decisions are made in a consistent, well-documented, and transparent manner, reducing risk.
Governance, risk, and compliance controls systematically enforce regulatory requirements during the loan application process. By applying decisioning analytics, solutions automatically trigger policy and compliance exceptions based on the financial institution’s business rules and policies. Overriding these exceptions requires an appropriate lending authority to review and document any mitigating factors.
Valuable banking solutions provide consistent processes aligned with regulatory requirements, eliminating manual identification and adjudication inconsistencies, which reduces potential audit and regulatory compliance issues.
Additionally, banks should consider solutions that provide management insights by using key performance indicators (KPIs) to pinpoint root causes of performance, both positive and negative, using correlation analysis, and drill-down and drill-through functionality. Root cause analysis provides insight into performance strategy optimization. Dashboards equip the institution with visualization to proactively analyze, research, identify, and promptly act on root issues.
For more information, download the Automating Consumer Lending Across Omni Delivery Channels interview brief.
