The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the automated loan decisioning content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
Faster approvals, enhanced accuracy, higher loan volume. Automated loan decisioning can help you achieve all three.
An overreliance on legacy loan decisioning models comes at a price. Higher application abandonment due to slow turnaround times, fragmented data that limits your ability to spot growth opportunities, and an increased risk of approving high-risk borrowers who are more likely to default. On the flip side, these same inefficiencies can cause you to overlook creditworthy applicants—missing valuable opportunities to build relationships and grow revenue.
There’s a better way forward, and it begins with bringing automation into the mix.
Automated loan decisioning can help prevent expensive missteps, speed up approvals among qualified applicants, and drive growth by increasing the number of applications that make it through to funding.
Solutions For Automated Loan Decisioning
We help financial institutions like yours build a path to more accurate, efficient underwriting. Our approach combines comprehensive data intelligence with configurable automation, boosting instant decisions while strengthening risk assessment.
What makes that possible? MeridianLink® Consulting decisioning, analytics, and scoring services.
Reveal Pro: Two Distinct Solutions Working Together Seamlessly
Decisioning Optimization
Using modern data science tools and statistical analysis, Decisioning Optimization (DO) pinpoints critical risk drivers and their thresholds. This helps you create a tailored lending strategy, credit policy, and risk appetite within an automated underwriting framework.
What does that look like? Let’s break it down.
- DO selects the variable sets most predictive of risk and calculates those variables’ inflection points.
- Guided by extensive data analysis, DO translates the inflection points into thorough underwriting guidelines.
- DO tests these guidelines in simulated credit decisions on thousands of real loan applications to ensure efficacy.
- Based on simulation outcomes, the underwriting guidelines are further refined and then implemented within the decisioning engine to drive more accurate, automated instant decisions.
Advanced Analytics
To maintain your enhanced decision engine, Reveal Pro offers Advanced Analytics. This service actively monitors automated decisioning rates and portfolio performance to keep your operation on track.
Advanced Analytics can help you quickly reconfigure your underwriting guidelines based on shifts in the macroeconomic environment, your consumer risk profile, and credit strategy.
Together, Reveal Pro’s Advanced Analytics and Decisioning Optimization services empower you to keep tabs on evolving market trends, understand consumer behaviors and tailor service accordingly, update pricing strategies based on key data points, perform benchmark analyses, and so much more.
The end result? Smoother operations, faster decisions, and lasting portfolio growth.
MeridianLink Consulting also offers Custom Scoring to boost approvals among qualified applicants and safely increase business. Unlike generic credit scores, Custom Scores aggregate data from multiple sources, customized to your consumer base, to give you a more holistic view of each applicant and their qualifications. With this knowledge, you can more confidently define underwriting parameters, loan structures, and risk-based pricing levels.
Ready to harness automated loan decisioning?
Portfolio growth is within reach! See how MeridianLink® is tapping into automation and deep data insights to help financial institutions make faster decisions, improve risk assessment, and approve more qualified borrowers.
Schedule a consultation to see these solutions in action.
