How Automated Credit Decisioning Systems Are Improving Lender/Customer Interactions

Loan origination software that offers automated credit decisioning capabilities can allow lenders to develop smoother business processes, though in the wake of the financial crisis several years ago, some lenders are still hesitant to rely on process automation solutions.

Automated Vs. Manual
Credit Decisioning Systems

These lenders might take stock in the viewpoint that manual decisioning is more accurate and efficient, a myth that can cost these businesses the benefits of consistency and efficiency offered by automated decisioning. The value of this approach is proven in the stronger customer interactions many banks now enjoy after automating the origination process.

John DeMarchis of PNC shared his experience with American Banker, saying his bank’s recently implemented portfolio management software yields greater cross-sell opportunities without leading to interactions that frustrate and alienate consumers.

Inbound customer inquiries have traditionally been a minefield for some banks, as they run the risk of marketing products that the customer either does not want or already has. However, with business process automation solutions, manual data entry and retrieval is eliminated, speeding the time in which bank representatives can secure customer data and offer the most suitable product without losing out on a potential cross-sell opportunity.

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“It’s extremely exciting,” DeMarchis told American Banker. “We view it as having huge possibilities in terms of how we interact with our customers.”

The most effective automated credit decisioning systems are those that allow for flexible standards that adhere to the specific institution’s credit policies and requirements. While some lenders may assume automated decisioning systems are too rigid, the reality is that the most effective products available can be configured easily by administrators. And if a bank’s current decisioning software solution does not allow for this flexibility, it may be time to consider a new product.

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