ill-prepared to deal with the increas- ing flow of traffic coming from the internet portals used by brokers and consumers. Lenders can only realistically partic- ipate on these sites if they can give instant and accurate decisions. The model does not work well if the deci- sions are slow to arrive and initially only estimates. Apart from the ques- tion of accuracy, there is the ques- tion of application turnaround times. How can a lender hope to handle the volume of enquiries that can flow from such portals if they are reliant on old technology? Compare this to automated underwrit- ing platforms such as LendingMetrics’ Auto Decision Platform (ADP) that can comfortably handle tens of thousands of applications from such portals in a short timeframe. Real time and com- prehensive assessments of all areas of a prospect’s finances can be tapped, so that a personalised and accurate decision is provided - instantly. Every
decision will be in line with credit policy (even a proprietary a scorecard), there will be no manual mistakes, and indica- tions of fraud will be better detected by the technology. Instead of having to plough through a pipeline of variable quality leads, lenders can dip into the applicant stream and, in milliseconds, only pull out those likely to meet their score- card criteria. The potential for auto- mated technology to make millions of quick decisions in a matter of minutes, means that sampling the ‘waterfall’ of applications and making initial screen- ing decisions is possible and practical- ly cost free. Lenders can make a rapid automated ‘no’ decision much earlier in the process based on in-depth trans- action data. And this approach dramatically reduces the ‘refer’ scenarios, and there is no ‘we will contact you once your application has been processed’. Instead, the applicant has an accurate and instant yes or no decision.
No one can afford to allow prospects to drop out of a process, given the amount of time and money spent to attract them in the first place. Lenders need to appreciate that if they are to truly thrive in the very competitive and changing lending environment that we now have, they are going to have to move faster and more decisively in this area.
Above: LendingMetrics Commercial Director and co-founder David Wylie
+61 (0) 8946 79555 | www.lendingmetrics.com/au
Metrics Monthly | 11
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