A former Citigroup CEO and ex-chief risk officer of American Express are part of the team behind a new risk decisioning platform meant to level the playing field in digital lending.
On Tuesday, the data analytics and digital operations and solutions company EXL, the decision workflow automation software provider Corridor Platforms and the management consultancy Oliver Wyman announced they are jointly offering risk decisioning software and services for financial institutions. The goal is to help midsize and regional institutions in particular compete with larger companies that apply sophisticated technology to point-of-sale financing, digital loans, mortgage approvals and real-time credit limit changes.
The product is ready to deploy at smaller midtier banks and credit unions. The team said in a press release that it will use both external and internal data sources to deliver real-time decisions while letting the bank client retain control over compliance and governance. The types of data to be collected and analyzed will depend on the situation. For more complex scenarios, such as point-of-sale financing and buy now/pay later, the product may combine bank data, cash flow information, and merchant-specific data, such as customer purchase history.
“As digital lending products have proliferated, the customer expectation for instant approval on everything from a buy now/pay later offer to an online mortgage application has put enormous pressure on lenders to automate their credit risk decisioning processes,” Ash Gupta, chairman of Corridor Platforms and former chief risk officer of American Express, said in the press release.
Gupta is credited as a pioneer of
“We’re bringing … leading technology, analytics and governance experts together to create a solution that will make lenders competitive quickly, while transferring critical know-how so that they become self-dependent in the long run,” Vikram Pandit, chairman of EXL and
Gupta, Pandit and Til Schuermann, co-head of Oliver Wyman’s finance, risk and public policy practice, are all driven by “the desire to empower knowledge transfer from industry experts to community-based institutions,” Manish Gupta, founder and CEO of Corridor, said by email. “Each will be lending his respective expertise in bank operations, risk management and governance to make that happen.”
The three companies intend for their product to serve banks of all sizes, but say it will be especially attractive to those that don’t have the budgets to invest in data technologies or attract talent skilled in artificial intelligence and machine learning. The platform is designed to be implemented quickly and by a small team, while the volume-based pricing model means the cost will align with how heavily the platform is used.
