The Challenge
Our client, a key player in the loan origination space, operates a mobile application delivering loans across several African nations, including Nigeria, Uganda, and Zambia. With plans to rapidly expand into six additional territories within two years, the company faced pressing challenges tied to their reliance on a third-party low-code decisioning engine.
This legacy solution resulted in escalating operational costs for each new market entry due to its rigid structure and limited testing capabilities. Any minor updates to decision rules—such as acceptable risk thresholds—triggered a cumbersome process requiring full redeployment of the ruleset. Moreover, the legacy platform lacked a robust testing framework, making it difficult to ensure the correctness and consistency of decision logic prior to deployment. Consequently, decision-making was significantly delayed, hampering the firm's agility and competitiveness in a fast-paced financial landscape.
Additionally, the lack of simulation features inhibited their ability to predict market responses to policy changes accurately. Opti-Num was engaged to develop a bespoke, high-throughput credit decision engine that would allow Fintech Solutions to enhance throughput management, improve time-to-market, and reduce operational costs.
The Solution
Opti-Num designed and implemented a highly customizable credit decision engine tailored to meet the technical and operational needs of Fintech Solutions Inc. The solution featured several key enhancements:
- Cost-Effective Architecture: The decision engine was architected with efficiency in mind, significantly reducing operational costs compared to the existing low-code system, allowing for scalable expansion into new markets without proportionate cost increases.
- Simulation Capabilities: We incorporated robust simulation features that empowered the client to model various credit flows and decision rule sets, with the ability to process thousands of historical or synthetic loan applications in seconds. This functionality allowed them to make data-driven predictions and adjustments, minimizing risks prior to live implementation.
- Customization and Flexibility: The engine was designed to allow rapid modification of parameters used by decision rules, such as risk thresholds, without needing system redeployments. This level of customization enabled Fintech Solutions to adjust risk parameters on-the-fly, ensuring quick adaptation to evolving market conditions.
- Integration with Existing Infrastructure: Our solution seamlessly integrated with the client’s existing cloud infrastructure, specifically designed for hosting machine learning models and orchestrating backend applications. This ensured all components worked in harmony within their operational ecosystem.
The Outcome
The implementation of the bespoke credit decision engine realized substantial benefits for Fintech Solutions Inc.:
- Cost Reductions: The operational efficiencies gained led to a marked decrease in overall costs, enhancing profitability as they expanded their services into new territories.
- Enhanced Decision-Making: With newly available simulation capabilities, the client improved their decision-making accuracy and speed, allowing for better risk management and optimized loan offerings.
- Improved Reliability: A comprehensive test suite ensures each decision rule is validated prior to deployment, increasing confidence in the consistency and correctness of every change.
- Rapid Scalability: The flexible, modular nature of the new engine enabled Fintech Solutions to scale their operations effectively across multiple regions, confidently processing up to 20,000 loan decisions per hour.
- Strengthened Market Position: The improved agility established Fintech Solutions as a competitive leader in the financial services sector, giving them enhanced credibility and flexibility in catering to diverse market demands.
Ultimately, the collaboration with Opti-Num has equipped our client with a scalable, responsive credit decisioning framework, allowing them to navigate complex market demands with precision and confidence. By addressing technical uncertainties and collaborating closely with the client, we have helped set a new standard for fintech solutions, demonstrating the transformative power of tailored technology in accelerating operational excellence within the financial services landscape.
.png)
.png)
