Modern and effective loan sales credit process for financial institutions

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Must have: a modern and effective loan sales process for financial institutions. It can be part of your organization at an affordable price in 3-4 months!

Does your company have an effective loan sales process? Does the currently used process have all the key qualities that on one hand optimize the credit risk and on the other improve sales and customer service? We are confident that it is possible to design a multi-functional IT system that will positively change the existing paradigm – AMA Institute has developed a proprietary tool that can be implemented in your organization within 3-4 months!

AMA Institute implemented such a system a few months ago in one of the financial institutions in Poland, where such a system is not worse, and in some aspects is even better, than similar systems applied by top financial institutions in Poland – for example in Top 5 banks. A complete IT landscape has been developed and implemented in record time and already started to bring the planned first benefits to the organization. That complex IT system can be implemented in any other financial institution and what is most important is the fact that the time required for its implementation will not exceed 3-4 months.

Why are the existing loan sales IT systems still obsolete and do not meet customers’ and organizational expectations?
The implementation of a modern and effective loan sales process is a turning point for many financial institutions. Until now, the design and implementation of such an IT system was simply not affordable. Why? The existing software solutions have been either too expensive or not in harmony with the organizational needs. On the other hand, opting for a tailored IT solution is even more unattainable – it requires high investments (often amounting to several millions PLN) and engaging human resources for a long time (such projects may often run for more than several years). Even now many existing financial institutions do not have enough financial and human resources to start an implementation of such projects.


Modern and effective loan sales process – what does it mean?

What does ‘modern and effective loan sales process’ header actually mean? It stands for simple processes and desired automation, achieving on one hand better customer service and on the other – employees’ satisfaction. A modern and effective loan sales process is a user-friendly IT system integrating very complex and complicated software solutions. It consists of a credit risk module and a credit decision engine (calculating credit scoring models and complex credit decision rules), an individually calculated customer credit limit module, a module for automated communication with external databases (for example: customer credit history, databases that help counteracting possible frauds, etc.), a module for automatic KPI reporting and modules for generating and archiving customer credit documentation. These are the most important modules, but not all of them. The first benefit that both customers and organization notice after the process of implementation is the minimal ‘time-to-yes’ – time required to analyze and make a credit disbursal to the customer’s account, keeping credit risk at required levels and achieving positive customer selection in the long run.

Win-win philosophy
The loan sales process and IT solution designed by AMA Institute disrupt the status quo, offering a complex and unique solution that can be implemented in any organization at an affordable price within 3-4 months. A modern and effective loan sales process, similar to the one that AMA Institute has developed, is a vital tool not only in the financial sector, but also in any other, where organizations service customers and wish to build long-lasting relationships. Organizations should optimize their operational processes to be perceived by customers as friendly, flexible and transparent, creating an environment that encourages loyalty and satisfaction. What is most important is that such a system is an effective approach towards win-win philosophy, where no one loses, but all parties involved draw benefits: customers, employees and the organization.
To find out more about modern and effective loan sales processes, please visit our website: https://en.amainstitute.pl/build-and-effectively-manageconsumer-finance

Friendly and secure credit acceptance process in 20-30 minutes

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Friendly and secure credit acceptance process in 20-30 minutes is possible – thanks to scoring models, to changes in sales processes and pricing strategy, as well as to a new customer communication model

AMA Institute has been implementing important remedies in financial institutions, in particular introducing simplified and more effective credit acceptance processes. On only few months AMA Institute implemented significant changes, leading in one financial institution to an overall organizational brand improvement, customers’ and employees’ satisfaction, as well as to better financial results, maintaining and even reducing overall credit risk. How? By building and implementing an IT system, where one of the important pillars consisted of scoring models, supporting the credit acceptance overall process.

Recently, such intelligent and quick changes applied by using an advanced technology and analytical tools have been a ubiquitous paradigm change in enterprises abroad. Thus, for example, applying scoring models in practice has been becoming more popular (and less expensive) in Poland, and AMA Institute pioneered the commoditization and implementation of analytics for companies of any size. Scoring models could be applicable with great results practically at any industry, offering solutions to many business nowadays’ challenges. In financial institutions such as banks, loan or collections companies, scoring models could be claimed to be necessary tool for effective functioning. What could be achieved by them, one can see in the example below.


How the new credit acceptance process may remedy the functioning of a financial institution or fast consumer loan company?

The market of fast consumer loans has not been praised by a good reputation. The customers’ credit applications that were approved quickly based just on customers’ ID were often accompanied by not customer-centric (if not said more) practices. Very often analysts were criticizing that the above mentioned companies made their business based on customers’ unawareness and lack of financial education, leading many customers to personal bankruptcies or falling into personal debt spiral. One of financial institutions in Poland requested AMA Institute to help it in building a fast, transparent and simple in client servicing a credit acceptance process, that on one hand will be financially prudent for a company, but on the other hand will be helping customers to improve their financial education and help them avoid possible personal debt spiral in the future. Such credit acceptance process should have been primarily governed by ethics and customer focus, where both a customer and an organization would be considering their relationship as mutually beneficial.

Genuinely simple solutions
Thanks to business experience and technology that AMA Institute possesses, the challenge was resolved. A new credit acceptance process was built based on intelligent scoring models that were in-built into the whole customer-friendly process encompassing the changes with regard to sales processes and its whole philosophy, risk-based-pricing, as well as to changes in customer communication model and practices, leading to a small credit revolution.

Thus, a new IT platform was implemented, where customer credit applications could be entered, leading to lowering time-to-yes credit decision to no more than 20-30 minutes, keeping the risk levels at the same or even lower levels. A respective strategy has been announced by means of a new marketing-educational campaign, where the target groups were also supported by means of advanced modelling techniques. The new credit acceptance process also supported the implementation of a new communication model, where even rejected customers were receiving the dedicated educational materials to support them in avoiding making wrong financial decisions. The employees were trained respectively in order to keep the planned customer communication in a simple and customer-friendly manner by means of words and tools that any customer would understand, especially those, who were more prone to fall into a debt spiral.

These are only few mentioned changes that AMA Institute proposed and helped to implement in practice. While you read it, it may sound like obvious, nevertheless, implementing a lot of changes in many places of the organization was the only possible way to build an ethical and customer-friendly credit acceptance process, that financial organizations have been looking and customers were waiting for.

Business Intelligence – great passion for each of 4 managers and scientists!

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Profound scientific knowledge and long overall work experience, gained at leading managerial and projects’ roles, led to the foundation of a new company – AMA Institute, a consulting boutique that aims at changing the role of analytics and its application for business. „What if predictive and scoring modeling were to become a commodity?” – the founders thought…

Siergiej Fuks, Karol Przanowski, Adrian Suska and Paweł Oberda aim at making predictive modeling something that once Steve Jobs made with computers – expensive and unavailable things accessible only for people with engineering and machine knowledge were made a common commodity with user-friendly interface available for everyone at acceptable price. Complex predictive and scoring models that often cost hundreds of PLN, requiring advanced software tools to be built and monitored were available only for selected big and wealthy corporations with high dedicated financial budgets. However, thanks to AMA Institute’s founders that invented a unique and innovative tool ASB – Advanced Scorecard Builder – predictive and scoring models may become available for any enterprise that aspire to build its effectiveness and competitiveness based on data and business knowledge that may be inferred from it.

AMA Institute specializes in building, implementing and monitoring advanced analytical models that support optimal business processes (for ex. segmentation, CLV – customer life time value, forecasting sales and future customer behavior including anti churn, preventing fraud, etc.). AMA Institute also has a unique patented approach for strategically managing sales and whole enterprise, as well as possesses unique market competence of building effective consumer finance business – and this is not yet all.

A company that encompasses a center of business knowledge
There is a specific reason why the name of AMA Institute contains the scientific word „Institute”. The company’s founders possess a number of diplomas of international studies that include mathematics, information technology, business and one of the founders is an active lecturer at Warsaw School of Economics. Due to interdisciplinary, diverse knowledge and experience, the company is sharing and propagating effective business practices by means of a number of workshops, open training sessions or individual coaching – a strategic pillar that a company has been developing actively.

Thus, a company is not only finishing its activities only at consulting or implementation of analytical solutions, but also pays a lot of attention on managerial aspects of implementation and propagation of the designed tools among clients’ employees. The scope of AMA Institute activities, therefore, include must have workshops and coaching sessions, where it is ensured that designed solutions are individually tailored, thus effectively solving unique clients’ problems and challenges.

„We advise on building effective business, operational and sales processes that build unique, aligned harmonic mechanisms. The whole eco-system functions based on applied analytical tools of business intelligence, which in a simple way support optimal organizational functioning. The ultimate effect is maximizing the value added for enterprise owners and its stakeholders” – AMA Institute founders say about their mission.
„We provide our clients with knowledge and solutions of high quality, striving for constant further development, building long lasting relationship based on trust and win-win philosophy” – they add.

More information about managers – founders of AMA Institute, as well as about ASB tool one can find on www.amainstitute.pl

Key business reports – how to make a great value from data in your company

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The role of analytics in business development has been growing in recent years. Today, however, in order to make a greater impact on bottom line, it is not enough just to gather and review the internal data, but it is required to effectively transform the data into valuable business knowledge.

The data usually encompasses the answers to many business questions. In order to find the proper answers, one should apply predictive and scoring models. This will allow predicting customers’, partners’ and market participants’ behavior, resulting in improved marketing campaigns’ effectiveness by means of better target group selection and segmentation. Predictive models may bring significant business value.

Predictive models’ reporting that produces valuable business knowledge!
There are two ways to build and implement predictive models in your company. The first one – to buy expensive software that may even cost 1 million PLN (~250,000 EUR) and hire the respective personnel to service it and analyze the analytical results. The second one – use AMA Institute service of building the tailored predictive models, resulting not only in significant financial savings, but also in time reduction, required to build and implement the respective predictive models, equipping business already with significant business knowledge.
Advanced Scorecard Builder (ASB) is an authorial solution developed by AMA Institute that allows building predictive models only in a few days. AMA Institute is the only company, which will also equip the business in tools that help to monitor the effectiveness of predictive models and provide business knowledge and insights by producing multiple automatic reports, where hundreds of business variables and their impact on business are analyzed.

What value your report is producing? Our – produces significant value!
The company that applies the mentioned above ASB tool to build predictive models, will receive valuable business insights by automatically producing multiple variables’ reports that are generated during the process of building the scoring model. These reports will help in finding the gaps in business processes, understanding better customers’ needs and behaviors, resulting in better planning the operational and customer service processes.

Apart from this, ASB tool will not only produce the respective scoring model, but also the automatic model documentation, as well as automatic model monitoring reports. The latter one will ensure that the predictive power of the built model is maintained, and if not, will show that the model change is required.
AMA Institute may help in turning the business knowledge acquired by applying predictive and scoring models into respective practical activities (for example – planning and executing the marketing campaign, building customers’ segmentation, showing which internal operational processes require changes in order to produce a higher value for a company, etc.).

Advanced analytics is not reserved only for big corporations with huge financial budgets. Every company may start applying advanced analytics and take significant business value form era of Big Data. Please, visit our web-page www.amainstitute.pl to get more information.

Predictive models as a tool for building operational excellence

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Applying predictive models is a necessary condition for any business to build its future based on unique strategy and long lasting competitive advantage. Based on quick and precise analytical insights, any business may find answers for important questions and challenges: “What will be the next customer’s move?”, “What will be the effectiveness of the planned marketing campaign?”, “How can we increase the efficiency of operational processes?”. The answer for the latter one by means of predictive models can be of particular importance to Shared Service Centers (SSC). Analyzing the respective trends and key performance indicators that has an impact on SSC customers’ business, SSC may provide a unique business value for its customers, building more close relationship with them, and creating a long lasting competitive advantage over its competitors.

Who answers first, takes all
What contributes to brand’s strength of any SSC? Among others are: impeccable and smooth operational processes, reduced costs, control over operational and fraud risks, minimal time required to respond to changing market trends and the most important one – understand its customer’s business and needs.

Some examples of challenging business questions that are ubiquitous in today’s business environment: “What is the probability that a number of defects in operational process will exceed the level of X (i.e. the operational process will not perform according to pre-agreed standards)?” or “What is the probability that a filed T&E (Travel & Expense) reimbursement is rather a fraud?”. In order to answer such questions, one would, firstly – need an access to the data that meets the completeness and quality requirements, secondly – spend significant time to make an analysis, thirdly – buy advanced programming tools, and, finally – hire and maintain talented data scientists. Predictive models have all of the above and can give the required answers already in a few days. Only a few days were required to build respective predictive models in companies that used AMA Institute services. Thanks to unique know-how and authorial developed tool ASB (Advanced Scorecard Builder), building predictive models is no longer expensive and time consuming exercise, and it has become irreplaceable tool for driving high business value.

Analyzing data may double the revenues
The great value added for SSC is the ability to build its own analytical center. To build a so called „Analytics Center of Excellence” for SSC, AMA Institute may help in a compelling way, paving the way for building analytical insights not only for the internal operational processes, but also for building business value for SSC customers. The latter one is the trend that one can no longer ignore. In practice, SSC becomes also a provider of analytical solutions for business customers, adding substantially to its portfolio of services.

The range of business questions that predictive models can help answering is so wide that essentially all industries and companies can be encompassed. ”What is the probability that a customer will buy a product, if a price promotion is applied?” or “What is the probability that a customer will resign from our services in the next 6 months? These are only two examples of simple questions that may be applied in practice in any business and industry.

In order to find more about predictive models and how they can be applied in business, please visit our AMA Institute web-page

Quickly built and implemented predictive models have become a fact for any business

- Knowledge Center

What a customer will do? This is a simple question to ask, but very difficult to answer, that any business is tackling every day. Will a customer buy a new product, or which conditions need to be met for that, as well as is there any risk a customer will resign from our services? If a customer decides to resign from our services, what may help in changing that decision? Should a new price promotion or changes in customer service be applied? These are only few out of hundreds questions, which daily an every business is trying to find a proper answer for: strategists and data scientists of companies in financial industry (banks, insurance companies, collection companies), retail, transport, marketing, shared service centres and many others are tackling every day.

Meantime, precise data – the heart of any customer and product knowledge – is available for analysis and useful business insights can be drawn due to use of predictive models. The application possibilities of predictive models are very wide, for example – optimization of marketing campaigns and designing customer contact strategies, as well as meeting customers’ needs. Predictive models, not long ago could have been considered an expensive and futuristic tool that only big corporations had an access to. Nevertheless, we can claim that predictive models could be available for any company, and this is the true fact.

Predictive models as a tool for optimizing marketing campaigns
Scoring or predictive models may help to answer many types of business questions that are of paramount importance for company’s strategy and development. Such statistical tool may help in predicting customers’ and contractors’ behaviours, as well as in predicting overall market trends. Applying predictive models may drastically improve the marketing campaigns effectiveness, bringing financial benefits to a company by increasing revenues and reducing costs. How? Based on predictive modelling, a target group may be chosen carefully and precisely in order to optimize the needed resources, improving at the same time customers’ response rates.

Predictive models will be a ubiquitous tool – even for SME (small and medium enterprises)
In case predictive models are such a good tool, then why they have not been used on a wide scale? The main barriers for that were: long time for building and implementation, expensive software to apply advanced modelling techniques, or the necessity to possess specialized analytical resources that a company could not afford to hire and maintain. This was the case, but no longer! Thanks to ASB (Advanced Scorecard Builder) – authorial unique tool designed by AMA Institute – building and implementing predictive models is quick, inexpensive and simple. Only in a few days your company may already start using advanced analytical techniques for resolving important business issues, in particular, predicting customers’ behaviours. Analytics and data transformation is no longer reserved for big corporations, scientific centres or narrow group of unique specialists. Please, visit our web-page www.amainstitute.pl to receive the necessary knowledge and help. Please, follow our publications regularly, where we will address the important aspects of predictive models’ applicability and their usefulness in business, and not only.