1 Front-End and Scoring engine
The scoring engine is highly integratable with loan origination solutions. The data from the loan origination solution or individual parameter tables are evaluated, scored, aggregated and assessed by ApPello Scoring Engine. XMLs arriving from the loan origination solution are managed by the Engine and the processed data are sent back by the same manner. Having regard to the frequent regulatory changes, in case of the expansion of the XML the system is able to handle the assigning new tags to the new variable.
As a result of the evaluation of the application, the Engine is able to provide clear answers and information of further workflow steps (acceptance, rejection, manual review, mitigation strategy: surcharge, guarantor, cover) for the Loan Origination System.
2 Dynamic data processing
The strength of the Application lies in its openness and flexibility. The Solution is capable of taking the input data necessary for the rating 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 workflow can be used by any connected application.
The Scoring Engines contain 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 intervention.
The evaluation and scoring system’s calculation/evaluation logic is highly formable and able to manage several logics at the same time based on the data (flag) recorded in same transactions. In a campaign for the same product different interest rates or conditions are applied.
3 Flexible scorecard definition
The Scoring 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 several 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.
4 SERVES ALL SEGMENTS
The Scoring engine serves both retail and non-retail segments. The risk conditions can be separated from each other, be associated with the given segment and work independently.
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.