Business Rules Management System

DecisionSmart offers business rule management capability on an account or customer level across the entire customer lifecycle, including the following decision areas:

PROFITABLE DECISIONS ACROSS THE CUSTOMER LIFECYCLE

ACQUISITIONS

Batch scoring the target population: Risk, Response, Profitability, Lapse/Cancellation Risk;

Segmentation of leads: Never contacted, Previously declined, Previously excluded, Thin/thick file;

Run champion/challenger campaigns to determine best channel.

Allocate campaign codes, channels based on segments and scores.

Support complex models (e.g. agent-matching for outbound call campaigns across the product set).

ORIGINATIONS

Scoring (application, fraud, behavioural, etc.) can all be executed through DecisionSmart’s scoring metaphor.

Scores (e.g. bureau and application) can be combined either in a matrix or decision tree.

Policy rules can be managed through DecsionSmart’s logical expression builder and policy rule groups.

Calculations, for example affordability and limit calculations, insurance premium values or mobile contract tariffs can be conducted through calculated workfields.

Champion challenger strategies can be managed with a random number generator decision trees.

ACCOUNT MANAGEMENT: CREDIT LIMIT MANAGEMENT

For credit limit management, a batch process is normally set-up feeding existing customer information into DecisionSmart – thereafter through a combination of Scorecards, Matrices, Decision trees, and Outcome Table. A final % limit increase offer is then determined.

The final limit offer amount can be calculated based on limit, balance, percentage increase, maximum limit, minimum incremental increase, etc.

ACCOUNT MANAGEMENT: AUTHORISATIONS

DecisionSmart will use the scoring engine, decision trees, authorisation table and workfield calculations to determine the “fit” and “cushion” percentages.

This will be fed back to the POS to approve or decline the transaction.

CUSTOMER ENGAGEMENT

 For customer engagement, DecisionSmart is enabled with the following key features: Scoring, Segmenting, Clustering and Action-Table;

If transaction data is used, then more advanced engagements utilising “next-best-product” are also available.

COLLECTIONS

Primarily it can be deployed to daily segment the delinquent population and then prescribe appropriate actions.

It has also been used to deploy right-time-to-call models enabling call-centres to improve their right-person-connect models.

Furthermore it can be used to deploy a external-debt-collector placement strategy.

Further opportunities lie in using DecisionSmart to calculate settlement amounts where an optimised settlement strategy has been built.

PROVISIONS

DecisionSmart can calculate, on a monthly basis, the expected losses across each book per account by running the following models: Probability of Default (PD), Loss Given Default (LGD), Credit-Conversion Factors (CCF) and Exposure at Default (EAD);

If Markov chains are used, then through decision trees these values can be applied to each account within a specific segment within a book. Furthermore the expected losses (EL) can be calculated incorporating any macro-economic adjustments, if required.

RECOVERIES

DecisionSmart can calculate, on an ad-hoc basis fair value of a particular segment of a recovery book. The software utilises: Scoring, Segmentation, Percentage allocation table, Calculation of account valuation based on balance and percentage allocated (using calculated workfields)