LendAPI Decision Engine Suite

Our goal has always been putting the power of building enterprise grade decision engine processes in the hands of our clients. We also believe that anyone with any level of technology expertise can connect, build and launch any risk management strategies using an easy to understand user interface with the most complete set of KYC, KYB, Credit Bureau and Income Verification tools around.

The Foundation Pieces

For LendAPI and our clients to have the broadest set of available scores, attributes and data sources, we ventured out from the very beginning to have the most useful set of third party integrations completed on the platform so banks and lenders can use it without having to conduct any integration work or involve any technical resources.

We have a board set of Identity Verification tools both for consumer and small business lenders. We also have all of the prime as well all of the subprime bureaus integrated in the consumer lending space so lenders can build their risk strategies with the mix of best practices with ease.

When it comes to income and employment verification, we have both permission and non-permissioned data sources. Plaid, MX, Flinks or Equifax’s The Work Number as well as Truv are some of the examples of income and employment verification tools available at any risk manager’s finger tips.

For those that are fans of permission based data providers, you can use our Product Builder and launch the permission based modal as a widget that’s built in directly into a launchable user interface.

For those that are into asset based lending, we have vehicle databases as well as core logic and JD Powers integration completed for you to verify of any kind.

Derived Variables and Mathematics

In our Model Studio, you can create any types of derived variables from application data, third party data. These derived variables can take advantage of LendAPI’s entire mathematical library to produce any result you desire. From simple algebraic manipulations to more advanced transformations.

You can finally create those intricate variables based on your experience and produce results that outcompete your competition. These derived variables, once published, are immediately available to be used in other parts of our platform.

Whether you want to use these newly created variables to write rules, insert them into an email or consents or promissory notes, these newly created variables will show up immediately in various lists and insert commands for you to create even more custom decisions and communication with your applicants.

A Powerful Rules Builder

One of the most powerful ways of expressing your business logic is to use a visual rules builder where you can move your trees, nodes and add branches to visualize the decisioning process and have it appear right in front of your eyes.

Once the decision trees are built, you can test them immediately with the rules testing tools to detect undesired results or logic based conflicts before these rules are published into the production environment. 

At the end of the decision tree lies the terminal nodes or end notes. These nodes activate other parts of the LendAPI Decision Platform and generate decision outcomes that can trigger events such as notice of adverse action emails or link to a complete do-it-yourself pricing engine where you can trigger variable pricing decisions based on the main decision tree outcomes.

A Pricing Engine That Does It All

LendAPI’s Pricing Engine is also a decision engine all on its own. At the most basic level, you can build a pricing algorithm based on any variable available in the system. For example, if you want to use a standard credit score as one pricing dimension and using other derived variables such as DTI as an additional dimension, you can simply input that as the look up variables for the rest of the pricing decisions attributes such as loan amount, duration, interest rates and fees.

The pricing table is laid out in a familiar spreadsheet format where you can easily manipulate individual cells and design your own pricing algorithms. Within each cell, you can build additional mathematical formulas and our decision engine will calculate these values in real time, on the fly.

“Price Reject” Segue  

One of the most used features in our Price Engine is our Price Reject functionality. Price Reject is a way for lenders to alert lead providers on the right amount of lead price they are willing to pay. This is a powerful tool to lower the total cost of lead purchase price by using your own models to assess the credit worthiness of a lead and the total financial outcome of a potential lead purchase.

If you are a lender and buying lead is one of the main ways of your total marketing strategy, you should consider working with the lead generation providers and leverage LendAPI’s Price Reject feature to get the best bang for your marketing dollars.

DIY Model Builder

If you are using any tools such as SAS, R and other statistical analysis tools to create models, you are likely to have a mathematical equation as an output. These outputs usually consist of a y-intercept, coefficients and independent variables that need multiplications and other transformational math functions to calculate a probability of an event.

You can use LendAPI’s model builder to automatically input the final mathematical equation right into the model expression editor. The model expression editor can validate the mathematical expression and allows you to save the validated equation. These saved model expressions can be used immediately and manipulated in with the LendAPI Rules Studio.

The variables used in the model expression can be mapped through the variable library supplied by the various first and third party data providers in the Integration Panel.

This complete set of functionalities allows to launch any mathematical models in a few minutes once the models are created by statistical analysis tools such as SAS or R. The launch time for these types of models usually would take years for bank and lender’s internal IT to prioritize, but with LendAPI any models created by the credit risk modeling team can go into production within minutes.

A Complete Set of Strategy Testing Tools

At LendAPI, we are all about providing the best set of tools for our clients to use to optimize their profitability. Therefore we invested thousands of hours to develop the best risk and strategy testing tools for product and risk managers to test various strategies in test and production mode.

Starting with our Shadow Testing too. This tool allows you to run your risk strategies, pricing policies as well as risk models in production mode but completely in the background without impacting any production level decisions. This will allow the systems to calculate the result of new scores, bringing untested third parties in production and observe the probability calculations and the stability of the third party supplied data without risking impacting your portfolio. This is a safe way to see if everything is calculated correctly before releasing the new strategies, models and third party data providers.

Our A/B Testing Tool kit or Champion and Challenger Tool gives you the ability to run multiple strategies at the same time. For example, if you have implemented a new strategy and you don’t want to risk your entire portfolio, you can use this tool to slowly test into the new strategy. For instance, you can set 5% of traffic from your lead sources to go through the new strategy and the remaining 95% is still run through the previous or current champion strategy. 

You can also set a timer to have this A/B testing or champion and challenger testing. This will allow the system to run this test for a short period of time and stop when the clock runs out. This testing tool will collect all the necessary information in real time and let the designer of the test know the outcome of the test with data points and reports.

Perhaps the most popular tool in our tool set is the Back Test tool. This is a tool where you can select the past 500, 1000 applications and have the new strategy run backwards and observe what would have happened if you’ve used the new strategy.

Of course the old applications must have all the data that supports the new strategy to be able to perform this test correctly. However, if all the data is aligned the backtest will perform the test in real time and you will immediately see the impact of this new strategy against the previous applications. The result of this tool is hugely impactful for risk managers and product specialists to observe new decline or approval rates without any cost or engineering hours. 

Model Runtime Service: Blackbox-as-a-Service 

The newest toolset to join our family of Decision Engine platforms is the ability to host your credit risk models without exposing your intellectual property. 

LendAPI’s Model Runtime Service provides a graphical user interface allowing our clients to upload Amazon Sagemaker, any Docker styled images as well as PMML and Pkl files. With inputs and outputs identified, banks and lenders will be able to immediately use their newly designed model in real time.

The benefit of hosting your backbox models is that you can take advantage of LendAPI’s high performance decision engine infrastructure and rules studio where you can direct how these models are being used.

Since we host your model which is compiled into a binary file or an image, your intellectual property is completely protected. You get the benefit of having a hosting environment without paying for heavy infrastructure costs and take advantage of your IP that no one can see to be hyper competitive. Think of us as the AWS of credit risk model hosting.

LendAPI Decision Engine Platform 2.0

As we forge forward with even more tools to enable more ways to calibrate and run your credit risk decisions, please enjoy the current set of tools designed specifically for our risk management community. You can head on over to our website at www.lendapi.com. Click on Get Started and enjoy a 14 day free trial.

About LendAPI

LendAPI launches your financial products instantly. Follow us on Linkedin, X, YouTube, and check out our Decision Engine, Product Studio, Underwrite AI, Embedded Financing Product, Marketplace, Lender Marketplace, Model Runtime Service,  Academy, Podcast, Capital and our Weekly Newsletter. Introducing our new community LendAPI Marketplace Slack Channel.