Here’s one example of how a financial institution used data analytics technology to achieve its lending goals and unlock significant growth opportunity.
A large regional credit union’s (CU) in-house model for scoring consumer applications was complex and not easily configurable, requiring changes to better respond to market conditions.
To streamline the application process, improve member experience and optimize personnel bandwidth while generating cost and time savings, the CU aimed to increase their auto-approval rates.
Solution
Working with an analytics consulting partner, the CU implemented a flexible loan approval model that uses existing look-up tables for PTI and exposure recommendations to fit the profile of a target applicant and seamlessly integrate with the legacy system — improving efficiency and decreasing decision times. The new, auto-approval process increased the overall auto-approval rate to 40%, potentially doubling revenue while reducing employees' workloads.
Results
The CU achieved its lending goals, increased operational efficiency and unlocked growth opportunities.