KM3 in personal loan business
The credit decision system KM3 was developed right from the beginning for the analysis and decision of complex large-scale engagements as well as for small standard-deals. In contrast to the complex engagements, the so-called small ticket deal has different requirements. A fast, efficient and reasonable decision is what you need, preferably full automatized. Manual interaction should be the exception because the small volume of such deals offers only low absolute margins.
KM3 fulfills this requirement by visualizing the whole process of credit decision, which runs either with or without manual interaction. A credit application is submitted with its essential business data via a web interface. After that, the system-rules that are implemented in KM3 do the pending processing.
Within this process, the system will use the master data to determine whether the customer can be explicitly identified. Often this is not the case when external vendor programs can submit applications. Usually they have no access to the internal customer’s database which makes it necessary to verify the foreign data.
This can always be supported by external means of identification, like SCHUFA or Creditreform.
Afterwards the credit rating of the applicant will be checked. For this, the method of rating (Basel II compliant) will be determined by means of fixed rules. The next step checks the needed requirements for a segment-compliant rating and requests the needed data automatically if needed (from Creditreform, SCHUFA or banks). The system will always try to achieve a decision without any manual interaction.
The sophisticated system of rules allows the system to get a fully automatized decision according the banks credit requirements within seconds. Ideally this would be granted.
But also a rejection or a reference to manual processing due to according criteria is contained in the system of rules.
After a positive decision, the application data will be posted online to the accounting system for further processing. This allows the system to execute steps that will follow, like payouts, immediately.
Thus, smaller financing engagements can be decided with KM3 in a fast, efficient and affordable way. That means a significant saving in process costs and an improvement of margins, especially in small ticket deals.
Contact person: Olaf Port; oport@s-und-n.de
