With 22 years of experience at Creditsafe in the UK and USA, Michelle is a seasoned professional who thrives in our dynamic environment of evolving data, technology, and solutions. She particularly relishes the opportunity to work closely with customers, as evidenced by the numerous glowing references she has earned throughout her career.
Credit decisioning software helps make the process of evaluating credit applications simpler and more uniform. By automating decisions, businesses can bring on new customers faster and more accurately, leading to smoother operations and happier customers.
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Credit decisioning software
It's important to look at what features credit decisioning software offers because it affects how well you can evaluate credit. Using software with the right features can help your team cut down on mistakes, improve how you manage risks and help you adapt to market changes - all of which give your business an advantage against the competition.
Tap into the power of credit decisioning software
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Key features to look for in credit decisioning software
1. Flexible data access options
Your credit decisioning software should offer multiple ways to access and ingest data, such as through a web platform, single-source API or integration with CRM systems like Salesforce.
Example: A mid-sized building materials supplier integrated their CRM system with credit decisioning software via an API. This meant they could make real-time credit assessments directly from their customer profiles in their CRM system.
Why It's Important: Flexible data access means that the software can be tailored to different business environments and needs, enhancing its usability and effectiveness.
How It Saves Time: It reduces the need for manual data entry and streamlines data processing, speeding up credit evaluations and decision-making.
2. No-code platform
Opt for a no-code platform to minimize development time and costs. This type of platform allows finance professionals to implement, customize and update the software easily without extensive technical expertise.
Example: A credit manager used a no-code platform to quickly adjust the application process to comply with the new credit policy.
Why It's Important: No-code platforms empower non-technical users to make necessary changes independently, reducing reliance on IT departments.
How It Saves Time: It allows for immediate adjustments, eliminating the wait for IT to add tasks to a sprint and deploy updates.
Our product expert Leo Lichman says, “Your standard decision tree can be developed and fully implemented within hours after reaching an agreement. This rapid deployment means you can start making more efficient and accurate credit decisions almost immediately, significantly speeding up your workflow and enhancing overall productivity.”
3. Easy integration with existing tech stack
The software should integrate seamlessly with your current technology stack, including CRM and ERP systems. This integration ensures a smooth flow of information and reduces the need for manual data entry.
Example: A large retail chain integrated their ERP with credit decisioning software to streamline their credit approval process.
Why It's Important: Seamless integration helps maintain consistency and accuracy across systems, improving overall operational efficiency.
How It Saves Time: By automating data transfer and reducing manual entry, it minimizes errors and speeds up the credit approval process.
Lichman says, “With this product, agents no longer need to run to their manager for collaboration. It offers full visibility and reporting for the entire credit team, making the whole process smoother and more efficient.”
4. Customizable templates based on credit policies
Your credit decisioning software should allow you to set up and modify templates according to your specific credit policies, rules and evaluation logic.
Example: A regional bank used customizable templates to implement different credit evaluation criteria for personal loans versus business loans.
Why It's Important: Customizable templates ensure the software aligns with your unique credit policies, improving the accuracy and relevance of credit assessments.
How It Saves Time: It simplifies the setup and modification of evaluation criteria, allowing for quick adjustments to changing credit policies.
5. Selective checks inclusion
It's important to be able to choose which checks to include or exclude in each template. This feature allows you to tailor the evaluation process to your unique needs and focus on the most relevant factors.
Example: An online lender included additional fraud detection checks in their template for higher-risk loan applications.
Why It's Important: Selective checks allow for a more precise and tailored credit evaluation process, enhancing risk management.
How It Saves Time: By focusing on relevant checks, it streamlines the evaluation process, reducing unnecessary steps and speeding up decision-making.
6. Threshold value settings
Setting threshold values for various checks, such as credit scores and credit limits, is crucial. These thresholds help determine whether an application is accepted, declined, or referred for further analysis. Remove human error by allowing the system to create the top line of credit extension therefore protecting your business from risk of over-extending.
Example: A credit union set threshold values that automatically flagged applications with credit scores below 600 for further review.
Why It's Important: Threshold settings provide clear criteria for decision-making, ensuring consistent and objective credit evaluations.
How It Saves Time: Automated thresholds reduce the need for manual reviews, allowing for quicker processing of applications.
7. Customizable evaluation logic
The ability to define and modify the evaluation logic used to reach credit decisions is a key feature. This means you can make decisions consistently and in line with your policies.
Example: A multinational financial services company included alternative credit data, such as utility payment history, in their evaluation logic.
Why It's Important: Customizable logic allows businesses to incorporate specific criteria and data sources, improving the accuracy and fairness of credit decisions.
How It Saves Time: It enables quick adjustments to evaluation criteria, allowing the business to respond rapidly to changing conditions and policies.
8. Quick rule and logic modifications
Business environments and credit policies can change rapidly. Your credit decisioning software should let you modify rules and evaluation logic within minutes.
Example: During an economic downturn, a financial institution quickly adjusted their credit evaluation rules to tighten credit limits and implement additional checks.
Why It's Important: The ability to rapidly update rules and logic ensures that the credit evaluation process remains relevant and effective in dynamic conditions.
How It Saves Time: Quick modifications reduce downtime and allow for immediate responses to new information or policy changes, maintaining efficiency.
Lichman says, “All of these features wrapped up in one allow you to standardize your decision-making process in a timely manner.”
By making sure that your credit decisioning software includes these eight essential features, you can make your credit decision process easier, faster and more reliable.
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Automated credit decisioning with Check & Decide
Check & Decide transforms lengthy credit and compliance checks into instant decisions, making it the easiest way to automate your company's decision-making processes. With flexible data access options, you can seamlessly integrate it with your existing tech stack, including CRM and ERP systems, to streamline data processing and reduce manual entry. The no-code platform allows easy setup and customization of templates without needing extensive technical expertise, enabling rapid deployment and updates.
Check & Decide helps you close sales deals faster by quickly checking prospects and speeding up approvals, ensuring consistent decisions that follow your policies and eliminate human error and bias. You can customize templates based on your specific credit policies, selectively include relevant checks and set threshold values to automate precise decision-making. The tool also allows for quick modifications to rules and logic, helping your business respond rapidly to changing conditions and policies. With access to real-time data on millions of companies, Check & Decide ensures fast, reliable decisions, making your operations more efficient and effective.
About the Author
Michelle Regan-Zamora