Decision Engine

If you are looking for a segment and product-independent Decision Engine which can handle various business -related decisions in a centralised platform, even the complex ones, you are at the right place! Our solution is enhanced by user-friendly features designed to speed up maintenance and automate any business decisions in any banking processes, like pre-screening, scoring, monitoring, collection and so on. Business rules and decision logic with graphical visualisation can be built and customised by the Bank’s employees with relevant roles, even without deep IT knowledge.

ApPello’s Decision Engine is capable of handing an unlimited number of different decision logics, which can differ by customer segment (including sub-segments), product, product variant, etc. The models can be different by product or client sub-segments. They may be versioned and tested. Results can be compared (champion-challenger). All parameters within the system are base parameters therefore mass upload of data components are feasible through an excel file.

The built-in decision tree enables users to analyse results and gain more knowledge on approvals or rejections.
The system can work as stand-alone Decision Engine as well as it can be integrated with ApPello’s Digital Loan Origination and Debt Collection Systems or any other third party solutions. Furthermore, the decision engine is able to provide alternative loan combinations. Besides loan origination, ApPello Decision Engine can be used to develop monitoring and collection strategy.

Capabilities
  • HIGHLY INTEGRABLE TO 3rd PARTY SYSTEMS
  • GRAPHICAL VISUALIZATION OF BUSINESS RULES & LOGICS
  • Power users can manage scorecards without it support
  • Dynamic data model, dynamic questionnaires
  • BULK UPLOAD OF DATA COMPONENTS
  • SUPPORTS BASEL II, III INDICATORS & CALCULATIONS
  • Models can be versioned, test-live models can be compared
  • PROVIDES ALTERNATIVE LOAN OFFERS
  • Multi-language support
Benefits
  • IMPROVED QUALITY OF CUSTOMER PORTFOLIO: PD, LGD, EAD
  • Business users can quickly implement or modify business logic without coding
  • Improved efficiency in risk management
  • Quick time to market, fast reaction to regulatory and environmental changes
  • Minimized risk and cost of updating business-specific logic
  • Clear answers and information of further workflow steps
  • Understandable rules and business-specific logical statements
  • Centralization of SENSITIVE BUSINESS KNOWLEDGE

Download Solution Overview!

1 HIGHLY INTEGRATEABLE SOLUTION FOR ANY DECISIONS

The strength of the application lies in its openness and flexibility. The Solution is capable of taking the input data necessary for the decision process from any existing systems of the bank and also from external data sources, while the final output generated as a result of the rating or scoring workflow can be used by any connected application.
The data from the source solution or individual parameter tables are evaluated, scored, aggregated and assessed by ApPello Decision Engine. XMLs arriving from the source solution are managed by the Engine and the processed data are sent back by the same manner. Having regard to the frequent regulatory and environmental changes, in case of the expansion of the XML the system is able to handle the assigning new tags to the new variables with the help of configurable interface.
As a result of the evaluation of the application, the Engine is able to provide clear answers and information of further workflow steps thus reducing operational risk and improving efficiency.

2 ONE SOLUTION FOR ALL DECISIONS AND ALL SEGMENTS

ApPello Decision Engine is a solution for all your decision points across your organization.
It is highly integrateable with loan origination, loan management, monitoring, debt collection and other solutions.
It is capable to serve both retail and non-retail segments. The risk conditions can be separated from each other, be associated with the given segment and work independently.

3 FOR ALL COMPLEXITY LEVEL - FOR A BETTER PORTFOLIO

The Engine supports complex calculations for non-retail and retail segment using the advanced statistical and mathematical functions of the system. Logit transformation or PD calibration can be quickly implemented by the risk experts of the bank. The system also manages the different steps of the PD rating calculation (model PD, overruled PD, decided PD, etc.) and expected loss calculations.

4 Flexible scorecard definition

The Decision Engine is responsible for scorecards and for their maintenance. Questionnaires and scorecards can be flexibly and periodically adjusted to reflect regulatory requirements or credit policy changes. Within the process, the users are able to parameterize all rules in parallel.
Scorecards can be defined for different client segments, for different loan products and also for different purpose for example pre-scoring, client scoring. Already existing scorecards can be copied and modified into different versions.

5 VISUAL EDITOR FOR CHANGES WITHOUT IT

The Decision Engine contains parameterized data models, processes and rules so for a new product or a client sub-segment further questionnaire and scoring models can be created by the Bank’s experts. When it comes to modification of a logic or parameter board, it is possible to add new parameters, clone, inactivate/activate or archive the old one without vendor or IT intervention thanks to the easy-to-use system.
It has never been so easy to orchestrate, test, evaluate the scorecard’s rules with the help of decision tree that visualizes the whole decision process.
The system’s calculation/evaluation logic is highly formable and able to manage several logics at the same time based on the versioning function. For example, in a campaign for the same product different interest rates or conditions are applied.

6 CHALLENGE YOUR CALCULATION MODELS

ApPello Decision Engine is a powerful tool to challenge your practices and build up different models that can be versioned and test-live models can be compared.
Champion / Challenger approach is supported. If there is a need for quickly deploy a business logic modification without knowing the impacts of the modified business logic vs the existing business logic it is possible to define a percentage by the user for the challenger logic. After this the system assigns each request (application / customers) to either the Champion (existing business logic) or the Challenger (modified business logic) on a random basis according to the defined percentage.
Testing module supports what-if analysis also with comparison of the defined what-if simulations.

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