Introduction to Decision Rules

The decision rules feature in our platform is a powerful tool that enables automated, efficient, and consistent evaluation of loan applications. By setting up specific thresholds and actions, lenders can streamline the decision-making process, reduce the risk of fraud, and ensure compliance with lending policies.

Understanding Thresholds and Action Settings

Decision rules can be configured with various thresholds and actions to dictate the response when an application triggers a particular rule.

• Thresholds in decision rules are predefined limits or criteria that, when exceeded or met, trigger specific actions.

• Actions can be categorized into three types:

  • Manual Review (Manual Check): The application requires a mandatory manual check by a back-office user before it can proceed.

  • Information Only (Info): The application can proceed, and the details of the check will be saved for informational purposes only.

  • Automatic Rejection : The application is automatically rejected if the rule is triggered.

Examples:

• Age Check: If the Customer's age is less than 18 (threshold), the application will be set for manual review to ensure that all legal requirements are met.
  
  

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• Credit Score: If the credit score is below 660 (“Soft cut off” threshold), the application must be reviewed, and if it is below 500 (“Hard cut off” threshold) the application is automatically rejected.
  

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Configure the Decision Rules

The decision rules are defined in the Settings → Decision Engine → Decision Rules.

You can:

• Disable or enable the rule: use the check-box to the left of the rule

• Change thresholds: enter the value that matches your policys

• Select the action: click the drop-down and select the option

Default Rule List

Fraud Prevention Rules

Fraud prevention rules are designed to identify and mitigate potential fraudulent activities. These rules include checks against various databases and patterns indicative of fraud.

• Blacklisted: The Customer's details are listed in internal blacklists.

• Driver’s License: The Customer’s driver’s license number is not unique in the customer database.

• Open Sanctions Database (OFAC) – Name & DOB: Checks if the Customer’s name and date of birth match any sanctioned individuals.

• Open Sanctions Database (OFAC) – National ID: Checks if the Customer’s national ID is on the sanctions list.

• Phone – Identical Numbers: Detects if the phone number data contains identical numbers.

• Phone – Not Unique Cell Phone Number: The Customer’s cell phone number is not unique in the customer database.

• Phone – Suspicious Number: The Customer’s phone number is on a list of suspicious numbers.

• Social Security Number: Checks if the social security number is unique in the customer database.

• Suspicious Age: The Customer’s age exceeds the threshold.

Application Check Rules

Application check rules ensure the Customer meets specific criteria before approving a loan application. These rules help assess the Customer’s eligibility and financial stability.

• Active Loan Count: Checks if the number of active loans with the lender exceeds the threshold.

• Age Check: Ensures the Customer’s age is not below the minimum threshold.

• Income Source: Verifies that the Customer is employed or has valid income sources.

• Net Income: Checks if the Customer’s net income meets the minimum required value.

• Past Due – Max Historical Amount: Checks the highest past due amount on the Customer’s loans.

Network Security Rules

Network security rules protect against risks associated with the Customer’s network activity, ensuring secure and reliable application processing.

• Network Threat Level: Assesses the Customer’s network threat level.

• Proxy Usage: Detects if the Customer is using a proxy server to apply for loans.

• Tor System Usage: Checks if the Customer is using Tor to apply for loans.

Geolocation Rules

Geolocation rules help verify the authenticity of the Customer’s location, enhancing security and reducing fraud risk.

• Address vs. Geolocation: Checks the distance between the address on the application and the current geolocation.

• Geolocation vs. IP Address: Checks the distance between the current geolocation and the IP address coordinates.

Bank Provider Rules

Bank provider rules assess the Customer’s banking behavior and financial health, helping to evaluate their creditworthiness. They can be triggered based on the results of the Bank Account Verification service provider, if the integration is enabled (see Integration with a Bank Account Verification Service Provider )

• Negative Balance Longest Nonstop Period: Checks if the bank account had a negative balance for an extended period. (Number of Days: 30, Manual Review)

• Non-typical Payment Behavior: Assesses unusual transaction behavior. (Number of Cases: 5, Auto Reject)

• Lack of Funds in 3 Months: Checks if the balance became negative multiple times in the last 3 months. (Number of Cases: 3, Auto Reject)

• Lack of Funds in the Last Month: Checks for frequent negative balances in the last month. (Number of Cases: 0, Auto Reject)

• Lack of Own Funds: Detects frequent negative balances in the last 6 months. (Number of Cases: 5, Auto Reject)

Credit Bureau Rules

Credit bureau rules leverage credit report data to assess the Customer’s credit history and financial behavior. They can be triggered based on the results of the Credit Bureau, if the integration is enabled (see Credit Bureau Services )

• Bankruptcy Check: Checks if the Customer has ever declared bankruptcy. (Max Bankruptcies: 0, Manual Review)

• Credit Score: Evaluates if the Customer’s credit score meets the minimum threshold. (Soft Cut Off: 660, Hard Cut Off: 600, Manual Review)

• Defaults Check: Checks the frequency of loan defaults by the Customer. (Max Defaults: 1, Manual Review)

• Inquiries Count: Monitors the number of credit inquiries in the last 180 days. (Minor: 10, Major: 15, Manual Review)

Co-Applicant Rules

Co-Applicant rules apply additional checks to the details of any Co-Applicants, ensuring comprehensive risk assessment. They are enabled subject to the co-Applicant Management settings), and are similar to the rules for the Customers on

• Fraud Prevention

• Application Check

• Credit Bureau Check: Please note that Credit Bureau Check must be enabled for Co-applicants.