Automate sales proposals in loan agreements

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[Music] automation of loan applications with operational decision manager the decision of approving credit cards or loans for customers is dependent on various rules and policies financial institutions can take days if not weeks to take a decision on loan applications if the approval process is managed manually leaving customers waiting or probably choosing a competitive product loan approvals involve a range of processes to be followed and checks are to be conducted in ance with the rules and policies set by the financial institutions and industry regulators but when these rules of policies change it creates operational chaos as the change is not updated simultaneously in all systems and documentation it also results in poor customer experience as customers end up waiting for results for a long time the absence of a central decision management platform makes the whole system inefficient and increases probability of errors and fall with ibm operational decision manager financial institutions can analyze automate and govern rules-based business decisions centrally in this demo we will showcase how financial institutions can scale business decisions using operational decision manager which has inbuilt governance and change management capability we will see how a decision maker can be used to help staff at a bank score a loan application to determine if they will accept or reject it as you'll see the staff are able to enter the details of the application such as age monthly income education and occupational stability this data can then be applied to the centralized network of rules the bank wishes to apply to all applications to quickly generate an overall score for the application the probability of the applicant defaulting on payments and an overall rating for the application we can see the first applicant has a good monthly household income an academic education with good occupational stability all these factors generated an overall score of 640 a lower probability of defaulting on the card and a higher rating this second applicant is however much younger with a lower monthly income and much lower job security these changing factors lead to a much higher probability of defaulting on payments and a lower rating for the application and a much lower total score these scores and probability of defaulting will help the staff at the bank determine if they accept or reject the application as you can see having the rules in a centralized network made it easy and quick for the bank staff to score applications and to ensure that the same standards and rules are applied across all applications no matter what branch or online platform they are sent from having these rules in a centralized location also means they can be updated and deployed in real time as you can see here the bank are able to access the centralized locations and update the rules or in this case the scoring increments they use to rank an applications process in this case we can see them updating the scoring given to those with ages between 36 and 46 which will have an effect on our first applicant now they are updating the scoring given for household income as you can see they have adjusted the earnings parameter needed for a higher score which will affect the second applicant if we return to the applications we saw in the first clip we can see that the total score for both of the applications has been changed our first applicant has seen their score decrease due to the lower scoring for their age range and a slight increase in this probability for defaulting on payments [Music] our second applicant has however seen their score increase due to the rules for household income scoring changing these changes in rules were able to be deployed and affect applications in real time and anywhere around the world or online you can try ibm operational decision manager as part of the ibm cloud pack for business automation empowering you to automate the implementation of millions of business rules and policies across your organization let's look at the technology that enabled this use case what is operational decision management every decision taken by a business or its employees is based on a complex system of internal and external rules these rules can be determined by a number of internal factors like company processes or employee management policies as well as bigger external factors like trading standards and laws keeping track of and applying these rules can prove difficult and confusing for businesses and their employees you can automate and govern decision making with a central decision-making software for example an employee at a bank has numerous rules to comply with when deciding to accept or reject a loan application but by using decision manager the employee can send the customers data to the server for processing the application will then be processed and returned approved or rejected based on predefined business rules the bank employee can now approve or reject the application much quicker and in greater confidence than if they have manually reviewed the application many of the issues with business rules is that they are stored in multiple formats both physically and digitally this makes applying and updating them incredibly difficult and time consuming for businesses using a decision manager helps to create a centralized library where business rules can be stored easily accessed updated and applied to any data [Music] this means multiple users or multiple systems will follow one version of truth making governance and compliance of business rules simple and consistent let's look at another common use case for decision manager for comparing and deciding a pricing strategy when drawing up a quote there are multiple strings of data and rules to consider these include the client's data and their past transactional history the quantity they want any discounts this might incur and current market prices and trends decision manager can help employees streamline this data and generate a price quickly and efficiently [Music] this is just one example of how businesses can use decision manager to orchestrate apply and govern business rules businesses have found success using it for a number of applications including to check rules approved transactions approve claims manage compliance and more all without any human intervention get in touch to find out how we at adp consultancy have helped our customers centralize apply and govern their business rules you