Application Risk Assessments That Minimize Credit Risk

Managing and assessing customer applications or loans is an important element of credit risk management. It also represents the essential first step in risk mitigation, understanding and analysing the prospect of negative financial outcomes from applicants.

Application risk assessment is the first line of defense to revenue loss and fraud which should not be overlooked. Yet it can also create a painful barrier to smoothly on-boarding new customers. That can be a particularly acute challenge in high-volume application environments such as telecommunications and retail banking.

Creating unintended barriers for customers is widely shown to reduce loyalty, decrease customer satisfaction, and negatively influence repurchasing behaviour. The challenge for many businesses is ensuring appropriate fraud and revenue protection while seamlessly assessing and on-boarding new customers.

The Neural Technologies Application Risk solution, powered by the Optimus platform, is designed to provide fast, accurate application assessment decisions in real-time. Alongside standard accept/decline/defer decisions, Optimus can provide personalized credit limit recommendations that offer flexible and dynamic credit management solutions for customers.

The sophisticated statistical and advanced neural network modelling can be tailored to the unique circumstances of particular operating environments. This enables organizations to offer credit solutions across the full spectrum of applications, preventing application rejections and loss of custom through a blunt one-size-fits-all assessment approach.

Alongside the artificial intelligence and machine learning solution of Optimus, Neural Technologies also integrates a robust identity verification process that helps ensure confidence in your credit risk management.

Optimus technology helps reduce revenue loss to subscription fraud, enabling organizations to monitor applications across multiple touchpoints, from bricks-and-mortar retail stores to contact centers and online applications. Advanced analytics provide simple oversight for analysts and teams across an organization.

The Neural Technologies Application Risk solution integrates with existing in-house screening policies and credit agency checks, providing consistency throughout a business. That flexible functionality enables customers to perform complex credit checks as part of an integrated credit risk management approach.

Risk management under pressure

This is a particularly challenging time for enterprise risk mitigation. The COVID-19 pandemic has caused a period of disruption that inevitably creates hurdles to standard process and risk management procedures.

Businesses are facing significant financial adversity, requiring rapid access to financing in order to support workforce payrolls and ongoing operational costs. Governments across the world are mandating or advising loan or financial support strategies to finance businesses and individuals at a time of extreme distress due to coronavirus.

Organizations may be under pressure to support the wider business community with rapid access to loans, or advised to provide a more flexible approach to credit risk assessment and credit repayments.

Enterprises are faced with this high-volume, high-risk application environment at a time when their own resources are stretched through absence due to illness, or simply through an enforced transition to remote working disrupting established processes. Frontline staff and face-to-face meetings may not be possible, meaning a robust online solution can be a crucial enabler of effective application risk management.

Our Optimus Application Risk product offers a revenue protection solution that enables fast, accurate application decisions for clients from telecommunications through to finance. It is fully configurable to your specific business requirements, interfacing seamlessly with internal and external data sources.

This is a rapidly scalable solution with low upfront investment costs, delivering real-time insight that reduces risks in on-boarding bad actors or customers with distressed finances. This kind of data insight is vital to ensure appropriate enterprise credit management in a volatile operating landscape.

Discover more about revenue protection with our recent blog — Fraud In The Time Of Coronavirus

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