3 Key Benefits of Enterprise Decisioning

Kristie Heinemann
February 14, 2012 — 1,467 views  
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Financial institutions (FIs) have many unique lines of business (LOBs) and products. Siloed decisioning processes are created when each product has its own independent workflow and attributes. However, sophisticated enterprise decisioning solutions allow FIs to connect their LOBs and share not only common attributes, but share customer information across business silos and channels. Shared data and attributes reduce the cost of data acquisition and provides more effective cross-sell.

First, having an enterprise decisioning solution in place allows FIs to share common attributes across all LOBs while still maintaining unique business processes for each product. This eliminates the need to individually build out common attributes for each line of business. Attributes that are shared save all LOBs time and money when implementing new workflows.

Second, consumer behavior has changed in ways that haven't been seen before. Consumers are paying off their credit cards before their auto loans and mortgages which many experts attribute these trends to the changing economic and regulatory environments. For FIs, being able to leverage more consumer data than ever is necessary to make sound lending decisions. With an enterprise decisioning solution, all customer data is stored in a central database. Internal customer data can be accessed not only across LOBs, but also across channels. This means that a customer service representative (CSR) in the branch and a CSR in the call center would have access to the same information and be able to view a customer's entire relationship with the FI to gain more insight into the customer's financial behavior. Having a central database allows FIs to successfully leverage the wealth of customer information that they already have, which can replace more expensive external data. With access to more data, FIs can make smart lending decisions even as consumer behaviors are rapidly changing.

Finally, enterprise decisioning solutions can also reduce the cost of data by making data aggregation for cross-sell more efficient. Legacy cross-sell processes involve making generic product offers to customers regardless of their needs or financial status. Modern cross-sell can use customer information to create relevant offers and even pre-qualify customers for new products. To decision a customer for a cross-sell offer, FIs often aggregate data separately for each product they want to cross-sell, but with enterprise decisioning solutions, data aggregation can be streamlined. During the account opening process, the FI aggregates data from a credit bureau and, oftentimes, alternative data sources. Instead of having to do this multiple times, the FI can gather all of the data required to decision the customer for multiple products using one simple process. This allows the FI to instantly decision the customer for not only the product they are applying for, but for additional products they are likely to be interested in. The cost of data is reduced because the FI only has to purchase information once.

Enterprise decisioning solutions can reduce the costs associated with data aggregation through the use of internal data and efficient data aggregation techniques. It also allows FIs to share attributes across LOBs which saves time and money when it comes to new products. These are just a few of the benefits that FIs gain from implementing enterprise decisioning solutions.




Kristie Heinemann