The mystique long clouding criteria for business credit lending – a major challenge for any business – is being swept away by a revolutionary new approach.
Experian SA, one of the country’s foremost information services companies, is pioneering an innovative solution that automates credit decisions by combining the group’s comprehensive data assets, predictive analytical models and best-of-breed application processing systems into a single model, KreditAutomate.
“Because accurate and consistent assessment of business credit applications is critical to the sustainable success of any company, Experian has, over the years, devoted much attention to finding an answer to the challenge,” says Michelle Beetar, Experian SA’s managing director.
She points out that the ability to make application decisions quickly, consistently and cost efficiently supports improved revenue recognition; appropriate allocation of resources and long-term customer relationships.
“Further, the KreditAutomate solution’s intrinsic workflow capabilities ensure that customer service standards are maintained and administrative backlogs reduced. The system facilitates the processing of routine applications, thereby enabling the more effective re-allocation of resources.”
KreditAutomate, she explains, is a hosted solution with a complete set of business rules that drive every credit application decision – rules that may be customised to change the parameters such that they comply with every business’s unique risk appetite.
Beetar spells out additional specific benefits:
- an automated assessment, within minutes, of each new business application;
- appropriate treatment of SMEs and non-SMEs;
- ability to determine the range of cut-off scores;
- response time is “significantly” shortened;
- highlights areas in which policy rules are either working or not working, thereby prompting remedial action;
- allows the appropriate level of management to sign off on the relevant levels of exposure, in the process achieving effective re-allocation of resource;
- provides consistent decision making; and
- decision consistency is maintained in a decentralised credit infrastructure.