Decision Module uses a variety of scores output from off-the-shelf models in combination with your business rules to decide whether the application should be approved, rejected or referred for manual decision. In addition to accept/reject decisioning, your business users create strategies for pricing, credit limit assignment and fee structures. Decision Module comes with FICO preconfigured rules and reports as well as capabilities for custom model deployment, strategy testing and comparison. Leveraging the full power of FICO® Blaze Advisor®, Decision Module is a proven rules management technology supporting the entire process of designing, building and maintaining decision applications.
The Analytic Module analyzes data from the loan application as well as from consumer and business credit bureaus using off-the-shelf models, such as FICO® Small Business Scoring Service SM (SBSS SM).
Based on how you’ve configured Decision Service, the Data Acquisition Module retrieves information from a variety of third-party data sources, pre-integrated into the module. These include consumer credit bureaus across the globe, business credit bureaus in North America and sources for non-traditional data, fraud prevention, ID verification, income verification and public records data.
Data Acquisition Module
When an application is submitted, your loan origination system calls FICO Origination Manager Decision Service, passing required data for decisioning.
Your Loan Origination System
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FICO® Origination Manager Decision Service Q&A
Origination Manager decision Service
Q: We already have a loan origination system. Why do we need FICO® Origination Manager Decision Service?
Book profitable loans at a faster pace while also accelerating new product launches. Expand lending reach while controlling credit risk. With FICO® Origination Manager Decision Service, business users can improve origination results by acquiring data from many third-party sources and combining rules and analytic models into highly effective decision strategies. This cloud service works with your existing loan origination system, so you benefit from FICO’s expertise in analytics and decision automation while enjoying short deployment time, minimal upfront investment and low maintenance expense.
A cloud solution to enhance your existing loan origination system with the advanced analytics and flexible strategy management of FICO® Origination Manager
Decision and reason codes are returned to your loan
origination system. Elapsed time: minutes or seconds
Q: How does FICO® Origination Manager Decision Service work with my application process?
A: The first reason is to make your current process even smarter. By injecting more analytic intelligence into it, you will cut decision time, approve more loans and increase profitability. Origination Manager Decision Service is the fastest way to embed FICO’s predictive analytic capabilities into your current loan origination solution. Decision Service provides deeper insights to separate “goods” from “bads” and make meaningful distinctions between gray-area applicants, so you book more new accounts while controlling risk.
Origination Manager Decision Service is the fastest, easiest way to benefit from analytics that give you deeper insight into the probable future behavior of applicants. They help you not only separate “goods” from “bads,” but make meaningful distinctions between gray-area applicants so you can book more new accounts while managing risk. If business users cannot change strategies quickly enough on your own with the system in place, Origination Manager Decision Service is a great addition.
The second reason is to provide rapidly available analytic support as you launch new products or enter new markets. With Origination Manager Decision Service, it’s quick and easy to tap into the new data sources so you're always getting the data you need for analytics.
"If we only picked easy decisions with the strongest credit scores, we'd miss out on a lot of business."
– Chris Miller, Vice President of Decision Analytics, Ascentium Capital
Q: What’s the difference between FICO Origination Manager and Origination Manager Decision Service?
A: Origination Manager is a cloud-based or on-premises solution covering most application processing steps. It consists of four modules: Application Processing Module, Data Acquisition Module, Analytic Module and Decision Module. Although you can subscribe to individual modules, this highly flexible solution, which gives you a lot of control over system configuration, is most suitable when a full loan origination solution is needed. More information on Origination Manager can be found at www.fico.com/originations.
Origination Manager Decision Service is a lightweight, preconfigured template of Origination Manager. Solely cloud-based, for simplified implementation, it consists of just three of the modules: Data Acquisition Module, Analytic Module and Decision Module.
As with Origination Manager, you can subscribe to individual modules or full functionality. Origination Manager Decision Service does not include Application Processing Module, since it works with the loan origination system you already have in place. Decision Service is the easiest way to get started with single modules for individual business needs.
Q: Which analytic models can we use?
FICO® Small Business Scoring Service helped one lender
acheive a 250% increase in loan volume with no delinquencies.
A: Origination Manager Decision Service is an ideal deployment option for FICO analytics because it’s a ready-made package for data access and scoring. The Analytic Module is preconfigured to support FICO pooled models, such as FICO® Small Business Scoring ServiceSM (SBSS). You can also deploy custom models or expert models easily through the Decision Module.
SBSS predicts credit risk for small business loan applicants. It analyzes business-specific data such as credit history, time in business, assets and liabilities, cash flow, revenue, liens and judgments.
SBSS is licensed as “off-the-shelf,” requiring no historical data from your organization.
Custom and expert models provide the highest predictive performance because they’re built from your own portfolio data. They can be created to predict credit risk, application fraud, attrition risk, lifetime value and many other types of consumer behavioral outcomes. Your choices will depend on the amount of historical data you have available, how quickly you need to have the model up and running, and your resource allocation for the project.
SBSS scores are also used by the US Small Business
Administration as part of its screening process.
One FICO client using custom models at originations increased
profit per application by 28% in just 15 months.
Q: Will Decision Service support the expanding needs of my customers?
A: The service has built-in connectors to additional FICO solutions which can further improve your origination process.
For fraud and anti-money-laundering checks:
• FICO® Application Fraud Manager helps you stop first-party, third-party and synthetic-identity fraud at the point of application.
• FICO® TONBELLER® Siron® KYC helps you comply with Know Your Customer regulations while improving customer experience.
For offer and booking:
• FICO® Decision Optimizer mathematically identifies the best origination strategy for maximizing your business goal, such as booking rate, within your operational constraints, such as delinquency and loss limits, and capital reserve impact.
• FICO® Customer Communication Services improves customer experience while accelerating time-to-booking by orchestrating origination processes across whatever mix of channels applicants use.
"FICO leads with world-class decision management and analytics."
– Forrester 2018 Digital Decisioning Platforms Wave, where FICO was designated a leader
Q: Can Decision Service be used easily for other lines of business at my organization?
A: The service supports data separation for multi-tenancy, so it can be scaled for use with multiple products, lines of business and branches or locations.
FICO has been named a leader in the Chartis RiskTech100® and won awards in the categories of innovation, Artificial Intelligence and Cyber Risk Quantification.
Q: Are there other industries where Decision Service can help?
A: Yes, Origination Manager Decision Service is flexible enough to be used for auto finance, telecommunications and a wide variety of customer onboarding processes.
To get started contact us.