LendAPI Credit Decision Engine - KYC, Identity Verification and Beyond

Credit Decision Engine is a specific type of decision engine that helps banks and financial institutions to make critical decisions. Sometimes these decision engines are home grown and built by previous employees and most of the time the organization uses commercially available decision engines to perform the task.

The first set of decisions a bank will make is KYC (Know your customer). Identity verification is part of any bank and financial institution’s critical underwriting process. Identity verification must be done in real time and preferably doesn’t involve complex interaction with their end users. To accomplish quick and accurate KYC and Identity Verification, users must have a robust Decision Engine.

Credit decision engines are a subset of decision engines or rules engines. They are built with a few things in mind. First, it must be able to integrate with third party data providers. Secondly it must have the ability to integrate into other enterprise systems such as bank core systems, loan management systems and other customer relationship management systems or CRMS.

Companies that supply decision engines are also industry specialists that understand the needs of banks and financial services. LendAPI is built by enterprise systems engineers with prior experiences in banking and financial services. LendAPI’s decision engines are built for a specific purpose, to make fast decisions with critical third party data providers already integrated.

Credit Decision Engine: KYC and Identity Verification

There are many identity verification data providers out there. Today, we will talk about TransUnion’s TruValidate product. TransUnion is a credit bureau with an international footprint. They are mostly known for their credit reporting database but recently TransUnion’s started to offer TransUnion TruValidate, an identity verification product that consists of attributes and scores.

A good credit decision engine should have all of the most used identity verification data providers already integrated. LendAPI’s decision engine not only has TransUnion’s TruValidate integrated, we worked with TransUnion to make all of the variables available for our clients to use.

LendAPI’s users will use TransUnion’s identity score to make quick decisions to see if they will let their end customers to move to the next step or require them to go through a different underwriting path. All of this workflow management is also available within LendAPI’s workflow engine.  

LendAPI’s users can quickly build a set of identity verification rules with scores and attributes from TransUnion to quickly decide whether a credit pull is warranted and move the end customers to the next step.

Credit Decision Engine: Credit Third party integration

Most of the commercially available third party decision engines come without any integration. Users must find additional engineering resources to integrate, test and validate each credit data provider such as TransUnion, Equifax and Experian. This could cause months if not years of delay. Some of the newly established FinTech players don’t have any engineering resources and credit third party integration becomes a biggest impediment to their launch date. A good credit decision engine goes beyond the rule authoring tools, it must come with all of the third party integrations ready to go and all end users need to do is to input their membership ID and off they go.

LendAPI’s decision engine is built with third party integrations in mind. Be it identity bureaus or credit bureaus or bank transaction data bureaus, we have dedicated resources to build out our ecosystem. We believe a robust third party ecosystem in our decision engine is what will set us apart and what will make our end user’s life easier. So they can focus on building their products and rules vs worrying about third party integrations projects.

Credit Decision Engine: Credit Decision Variable library

With third party data integrated, what about the content of the integration? Some of the credit bureaus such as TransUnion offer a myriad of products and services in identity verification, credit reporting and a whole host of credit scores. How will anyone make sense of all of this information coming from their favorite third party credit bureaus? 

A well thought out credit decision engine will have a robust credit variable library for the users to use. There are so many different usage models for these credit variables if they are made available and ready to be used in the rule authoring environment.

We examined many of today’s commercial decision engine offerings and we did not find any systems out there like LendAPI’s Decision Engine that comes loaded with variables from all of preeminent third party credit data providers such as TransUnion.

LendAPI’s credit variable library grows with you. As we integrate with more third party data providers, we will populate more and more variables into our library which will give you unlimited ideas to construct complex identity verification and credit underwriting rules.

Credit Decision Engine: User Generated Custom Variables

Credit Decision Engines today do not come with any custom variable editing tools. They rely on users to create them outside of the decision engine and feed them back into the decision engine. This puts a tremendous amount of engineering work and liability to the users. Most of the banks, financial services companies and fintechs don’t have the ability to manipulate variables coming from their party credit data providers let alone integrate them into commercially available credit decision engines.

A robust decision engine will have an aforementioned flushed out variable library but it should also have the ability to let users create custom variables right inside of the tool. This will let non-technical users really focus on rule building as opposed to waiting for external engineering teams to build custom variables one at a time.

LendAPI’s Decision Engine comes natively with a custom credit variables builder. Users can build as many variables as they desire and these variables can be used in Product Builder as fields to collect during the customer journey as well as used in rule authoring. The ability to create custom variables from scratch using an intuitive user interface is a first of its kind and it gives users a whole new plane field to build the most complex decisioning in our decision engine.

Try LendAPI’s Credit Decision Engine:

LendAPI is a fully integrated and customizable digital onboarding platform. A free credit decision engine is available for all of our subscribers to use. This decision engine is fully integrated with your favorite third party credit and identity third party providers. This decision engine is at the heart of our platform where it can trigger customer experiences as well as workflow orchestration. Give us a try at www.lendAPI.com free for 30 days!