Credit scoring and modelling

No customer wants to wait for a decision to be made. One in five people have abandoned an online application because the process was inconvenient, but there’s no reason this should happen. Building automatic credit approval into your sign-up process can allow you to offer worldwide customers an immediate decision around the clock. Experian’s PowerCurve Customer Acquisition platform is one way to make this happen.

Lending decisions traditionally take time, money and staff. Automating your approvals process by integrating a decisioning API such as Experian’s PowerCurve Customer Acquisition, Decisioning Plus or Decisioning Premier can vastly reduce those staffing overheads, cutting costs and reducing the risk of manual errors.

Every customer is different, and every business is too. There is no one-size-fits-all approval procedure, so you need the flexibility to tailor approvals to precisely meet your processes, policies and products. With a platform like Experian PowerCurve Customer Acquisition, you can work from templates to create unique decisioning journeys and strategies that carry across the entirety of the customer lifecycle.

Systems change can be disruptive, costly, and inspire internal resistance. Bringing in an existing and established cloud-based platform such as Experian PowerCurve Customer Acquisition streamlines the change process, reduces internal IT demand, and can transform your customers’ experience within weeks rather than months or years.

A comprehensive credit history is imperative to find out how financially stable a counterparty is likely to be, but this isn’t just a tool for assessing individuals. A full credit report obtained through a service like Experian’s Business Express can offer an instant and extensive appraisal of the financial standing of any company, from a sole trader to a PLC.

Truly comprehensive reporting requires more than just commercial data. Gaining an understanding of the personal financial circumstances of the people behind a business offers you a truer picture of any risks. A service like Experian’s BusinessIQ can provide this extra insight through its standard Reports module.

Comprehensive reports are incredibly valuable, but manually evaluating them can be time-consuming and costly. Tools like Experian’s Decisioning APIs simplify this process, connecting you directly to comprehensive databases of business information to speed up the evaluation of any commercial customer.

The metrics that inform your credit policies are unique to your business, and they will change and adapt as you grow. Applying a tool like BusinessIQ’s Decisioning module can make setting lending boundaries simple and automatic, and its API offers you an opportunity to integrate those policies directly into your internal and outward-facing systems.

It’s too late to check a credit score after an application is accepted. By integrating a tool such as Experian’s Risk Scores API into your lending processes you can put risk first, generating immediate credit scores right when they’re needed. Decisioning analytics then allow you to automate the decision-making process, cutting manual processing and worry.

A deeper understanding of potential risk goes beyond a simple score. Access to data-forward tools, including Experian’s PowerCurve Customer Acquisition platform and Risk Scores API, offers your business the chance to model risk. This helps you predict potential failures, insolvencies and defaults before they happen.

When managing a full lending portfolio, truly responsive decisioning has to consider all customers. Not only can an integrated tool like Experian’s Risk Scores API help you compare the risk of a new customer against your existing portfolio, but it can also aid you in periodically reassessing existing customers to spot new risks and challenges.

Different customers come with different levels of risk, and your business may have different criteria for taking it on. You don’t have to stick with a single credit policy, however. Running credit applications through services like Experian’s Business Decisioning APIs allows you to set multiple credit policies depending on your risk appetite for that type of business. This allows you to offer riskier customers a product that affords you greater protection.