Enterprise Decisioning Solution
Creating a decision management infrastructure that is flexible and can change with minimal IT support along with embracing a more integrated, enterprise-wide approach to consumer lending are key elements financial institutions must employ to thrive in the coming years.
—Kathleen Khirallah, managing director of banking practice at TowerGroup
Gaps in Consistency = Gaps in Customer Loyalty
Not only is inconsistent credit policy a risk for the financial institution (FI), it also delivers poor customer experience. Any time a customer receives a different answer or a repeated offer through different points of contact with an FI, they are likely to feel misunderstood or worse—lose trust in the lender. However, trying to establish a holistic view of the customer requires sharing data among lines of business (LOBs), which many FIs aren’t set up to do, or paying for data more than once, which would render the cost per account too high.
If an FI has siloed technology, then LOBs will not be able to share data and will also have to make changes on their own. This duplicates efforts and increases costs while delaying updates to credit policy and increasing the chance of errors being entered. To overcome these challenges and enable FIs to easily maintain current and consistent credit policy across the enterprise, Zoot selected best practices from its tools and services to create the enterprise decisioning solution.
Channels, Lines of Business, Credit Products, Credit Types:
How Do I Connect the Pieces?
Zoot's enterprise decisioning solution addresses the need for centralized control and accountability over the opening process. Zoot’s solution allows all lines of business (LOBs) to respond quickly to market changes with a consistent implementation of enterprise-wide business policies. Because all LOBs are integrated, strong cross-sell across the enterprise cabilities exist to support collaboration among the various lines of business and all customer channels.
Our enterprise decisioning solution combines Zoot’s products for each credit type with a common structure of attributes, rules, and reporting. LOB business users are able to directly control their business logic and make realtime production changes through an intuitive graphical user interface (GUI).
All data and service vendors required for each type of credit are accessible in realtime through a single connection to provide instant, accurate, and reliable decisions.
A Success Story
The good news for one top-10 financial institution was rapid growth through acquisitions; the bad news was ending up with over a dozen separate origination systems. Fortunately, Zoot simplified their decisioning process through enterprise cross-sell and integrated the systems across all LOBs.
The company broke even on the project investment in less than 18 months. In addition, one LOB increased presented offers volume 600 percent without additional staff. Moreover, the FI reduced time to decision applications from 2 weeks to less than 1 minute.
Learn More:
White Paper, “Customer Intimacy: Connecting through Cross-Selling”
Industry Brief, “Developing Risk Policy in a Dynamic Market”
