What is it and how does it work?

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When we need to make fast and secure financial decisions, what technology is behind this agile process? A credit engine .

This system has become an indispensable tool for companies that provide loans and credits, allowing them to evaluate the profile of each applicant in real time and make automatic decisions based on data.

In this article we will explain it to you in a simple phone data and clear way, so that you understand its value and how you can implement it in your business.

What is a credit engine?
A credit engine is a technological platform that automates the process of evaluating and approving credit requests.

Its main function is to quickly and accurately analyze the financial and personal information of an applicant , using algorithms that process a variety of data such as credit history, income, data and payment behavior.

This system allows financial entities to make decisions efficiently, reducing the time that would normally be spent on manually reviewing each request.

How does a credit engine work?
Now, naturally, a credit engine has a complex function capable of automatically evaluating the viability of a credit application. Know more.

Credit Engine

Collection of relevant data from the applicant, such as their credit history , income, current data and other financial data from various sources, such as credit bureaus, banking institutions and application forms.

Analysis and evaluation using pre-configured rules and algorithms to calculate the applicant's risk profile.

Automatic decision making in seconds about whether you decide, reject or submit to manual review of the request.

Generation of conditions , in case of approval, to establish credit terms, such as the amount, the interest fee and the payment term, among others.

In this way, the system ensures that it issues quick, objective and precise decisions, reducing risk and improving operational efficiency.

What are the advantages of having a credit engine?
Now, let's see what strategic and competitive benefits a credit engine can provide.

Agility and efficiency
By eliminating the need for manual revisions, a credit engine speeds up decision making, allowing credit requests to be resolved within minutes .

Furthermore, its ability to analyze large volumes of data with precision significantly reduces human errors, as decisions are based on objective and predefined criteria.

Security
By reducing human intervention, the credit engine reduces the possibility of errors , which reduces the reliability of the process.

This system is designed to detect unusual patrons or inconsistencies in the applicant's information, which helps prevent fraud and protect both the institution and its customers.

Customer Experience
Now, thanks to your agility, the applicants receive a response in much less time, which generates a feeling of efficiency and confidence.

On the other hand, by customizing credit terms based on each customer's profile, financial institutions can offer more attractive conditions , creating a closer and more satisfactory relationship with their users.

If you want to know how to implement it, keep reading.

How to implement a credit engine?
Implementing a successful credit engine requires the integration of advanced technologies and well-defined strategies that allow you to automate, personalize and manage credit assessment processes.

Here, we give you some key steps to achieve it:

Process automation
The key to implementing an efficient credit engine is automation.

For example, a business process management system (BPMS) allows you to automate agreement validation flows with criteria predefined by each institution.

This means that credit approval or rejection decisions can be made automatically, based on concrete data and personalized rules, leaving manual analysis only for specific cases.

Customization of credit rules
We know that each financial institution has its own credit policy that depends on factors such as the risk profile, the type of credit and market conditions.

Therefore, it is crucial that the current credit engine has a flexible tool that allows you to customize these rules according to the needs of the entity.

A well-designed engine allows you to modify and adjust the rules according to the evolution of the business, ensuring that the system remains relevant and updated in the face of changes in policies or in the economic environment.

Integrations
For the credit engine to be effective, it must be integrated with reliable external data sources, such as public databases and credit bureaus .

These integrations allow access to valuable information about the financial history of the applicant, which increases the credibility and security of the process.

By consulting these data in real time, the credit engine can make more informed decisions and reduce the risk of granting loans to individuals with poor or fraudulent financial histories.

Data management
Using a business content management system (ECM), it is possible to manage both the institution's internal data and information obtained from external sources, such as credit bureaus.

This system allows the analysis of consumption profiles, financial history and other factors that influence credit decisions.

The ability to manage and analyze this data in real time guarantees that the institution can make decisions based on complete and accurate information, which improves the effectiveness of the process and reduces risks.

Analytics and Dashboards
Finally, having analytics tools and dashboards is essential to monitor and optimize the performance of the credit engine.

These tools allow institutions to view key metrics, such as the number of approved requests, delay rates and customer behavior . By having access to this data in real time, those responsible can identify patrons, adjust credit policies and improve the overall performance of the system.

Meet SYDLE ONE
To achieve the efficient implementation of a credit engine, you need to have a robust and flexible platform that allows automation, integration and analysis of data in real time.

SYDLE ONE, an integral and personalized platform with Low Code , includes a BPMS system that allows you to automate work flows and validations in an agile way, with personalized rules that adjust to your entity's credit policies.

Its ECM module facilitates the efficient management of large volumes of data , both internal and external, ensuring complete control over the information.

Furthermore, Analytics and dashboard capabilities give you a clear view of the system's performance and allow you to make informed decisions in real time.

And, if it is not powerful enough, with your integrated CRM, you will obtain a 360º view of your customers , accessing all the information necessary to personalize the credit offer and improve the customer experience.

Finally, its ability to integrate multiple data sources through APIs ensures a fluid connection with credit bureaus and other key databases.