Enabling Business Users for Competitive Advantage
We have written previously about how banks are reducing complexity and simplifying their systems topography in an effort to gain a competitive advantage. It is addition by subtraction. Fewer systems to modify in support of policy changes helps reduce both costs and risks while improving responsiveness to changing market conditions.
Similarly, when business users and policy makers can make policy changes themselves, IT bottlenecks are bypassed, and there is improvement in average time to introduce changes. The quicker changes can be introduced, the quicker market feedback can be incorporated back into the learning cycles.
In recent conversations with a top-15 retail bank, they shared that it can take 6-9 months to make changes to scores and attributes in support of their lending policies. Furthermore, most of their changes have to be made with IT resources and prioritization can create further latency in the process. For this client, they can modify their attributes and associated scores at most twice a year.
Compare that with this bank.
One of our clients is using our technology to help enable their business users to initiate, test, and deploy attribute changes with as little as a week’s worth of effort. These changes are made directly to their UAT environment enabling full testing before being promoted to production. The change events are usually coordinated with an internal change control process, which introduces changes once a month. Still, the process bypasses most of their internal IT bottlenecks. This client is able to increase the number of learning cycles 6-fold over their competitor, and more importantly can introduce critical market-driven changes up to 5 months quicker.
Equifax is helping banks implement innovative solutions that deliver significant process gains and return on investment by integrating alternative data sources, enabling quicker changes often with little or no IT intervention, and can leverage existing technology investments. Contact your Equifax representative today to see how we can help your organization, or send us an e-mail.
This post was contributed by: Lee Grice.
Click here to subscribe to our blog posts.
Recommended For You
Last week, top data and analytics experts from Equifax and around the world convened in Edinburgh, Scotland for Credit Scoring and […]
Adaptive AI is the next great advancement in leveraging AI for credit risk. Equifax’s Chief Innovation Architect, John Fenstermaker, developed the product […]
Equifax has developed Insight Score™ for Personal Loans, a risk score optimized to help lenders evaluate applicants seeking unsecured personal loans. I […]
In November, Equifax and Moody’s joined forces to recap the economic and credit trends of 2018 — and look ahead […]