Optimising a Decision Engine for Lending Growth

Our client, a specialist unsecured loan provider, was gearing up for growth and due to several initiatives was anticipating a significant increase in lending originations in the coming months.

The lender was keen to improve their underwriting decisioning before ramping up lending, to ensure their processes were both more robust and scalable.

As part of this process, our client was implementing a new multi-bureau rule set to allow them to increase automation throughout their process, and therefore required Broadstone’s support in designing and building the new decision rule sets.

Broadstone’s Credit Risk team began the exercise reviewing the lender’s existing rules to ensure these were aligned to policy and appetite, before translating the logic for the new multi-bureau approach. Broadstone’s expertise across a wide range of bureau data resulted in a thorough assessment of all available data at point of application and allowed the team to propose the optimal information for the process.

Following an initial engine build from our client’s internal team, Broadstone took ownership of the decision engine, simplifying the process flow, removing redundancy, and increasing efficiency of the engine. The exercise also included a full review of the flow of information from application form through to the third-party calls, and application of a new risk-based pricing algorithm.

The review, simplification and change implementation process by Broadstone combined the team’s underwriting knowledge with their hands-on technical expertise in decision engine portals. The engagement resulted in a new decision engine for our client that followed best practice principles, supporting clarity and ease of maintenance, setting the business up for continued growth.