Solutions

Challenge

Credit decisions on corporate customer ACH files have serious consequences - denying a transaction that could have been approved is potentially devastating to a customer, while approving one that should be denied is costly to the bank.

These ACH credit line decisions can be made by personnel familiar with the client during regular business hours. Yet often customers submit late evening files, hoping to make the last processing window. In these time-sensitive situations, how can banks quickly make informed credit decisions that balance risk with customer experience and retention?

Solution

Systar’s ACH Credit Risk Decisioning application provides the most up-to-date customer credit risk information from across bank systems and silos, to provide accurate guidance for just-in-time ACH credit decisions.

The application’s intuitive dashboards arm decision makers with the holist, real-time information and historical context required for challenging ACH credit risk decisions on familiar and unfamiliar clients. It helps ensure that credit is never extended or denied in error by delivering information on:

• Credit Extensions: Consolidates risk information from other lines of business to provide a comprehensive view of credit risk as seen across silos.
  
• Risk Rating: Displays current risk rating along with trending information to see whether the client has slipped below the level necessary to support extending credit.
  
• Pending Assets: Shows if the credit risk of an ACH file is actually lower due to client assets across the bank that were not considered and might not be readily visible to the decision maker.
  
• Activity Profile: Compares files currently in process with expected patterns of behavior for that client on a given day of the week, day of the month, and depth into the month.
  
• History of Decisions: Provides additional context by showing the credit decision history for a specific client including date, value, amount over limit, and percentage over limit.
  

Why Systar’s ACH Credit Risk Decisioning application?

While home-grown tools or alternative solutions provide partial or after-the-fact information, Systar’s ACH Credit Risk Decisioning application injects today’s operational insight into customer credit risk information. It empowers the bank to make more informed decisions that mitigate credit risk while preserving customer loyalty and the long-term interest of the bank.

For more information download the Credit Risk Decisioning application brochure today.