How does decisioning/routing/pricing work?

You wouldn’t want to just accept a document from a borrower without first reviewing the document (to ensure it is correct, readable, etc.), so a user must update the status of the uploaded document to ”Approved” to satisfy the exception (or they can “Reject” the document to send it back to the borrower for re-submission).

When the status of the document is updated to “Approved” the status of the Policy Condition is automatically updated to “Satisfied” (and one exception has been handled successfully).

How does decisioning/routing/pricing work?

Credit decisioning is managed in Q2 Origination using graphical workflows (along with the Scorecard configurations we demonstrated a moment ago, as well as some additional configurations we have not covered yet). Since you asked us to provide a “graphical representation”, see that the graphical representation of workflows in Q2 Origination are available to you any time your inside the system (which we will demonstrate now). To demonstrate our credit decisioning workflow (and how we manage workflow routing in general in Q2 Origination), we must navigate to the Salesforce Admin UI and launch Flows.

Click Setup Flows. A list of workflow configurations will appear which represent different workflow orchestrations managed in Q2 Origination, such as KYC, KYB, fraud, adverse action and credit decisioning (which will be the focus of our demonstration).

Click “Run Credit Micro-Workflow” and “Analyze Credit Micro-Workflow” from the list of flows (each will launch in a new browser tab). We break the credit decisioning workflow into two flows because they happen at two different levels (first, at the Party level to capture credit data for each entity; and second, at the Application level to aggregate the credit data, determine the credit rating, make a credit decision and generate pricing).

Let’s walk through the credit decisioning workflow (beginning with the “Run Credit Micro-Workflow” workflow). The credit decisioning workflow is triggered upon application submission and automatically runs for all applicable parties (i.e. credit entities involved in the loan). Start by clicking on the “Credit Check Done?” workflow node.

This node determines if credit has been run for the current party on the application. If credit has been run for this particular entity, the workflow will stop…otherwise it will continue.

The next step in the workflow is determining whether the entity is an individual or a business so we can run the right credit inquiry (and to the right provider)… click on the “Business or Individual?” node of the credit workflow

The workflow determines – based on the party’s Legal Entity Type – whether they are an individual or a business.

If the party is an Individual, the workflow branches to the top portion of the workflow, where the appropriate thirdparty adapter is identified and initiated (click “Decision Is Active”).

As you can see, if the party is an individual, the consumer credit adapter (to Experian, Equifax and TransUnion) is automatically selected.

However, if the party is a business, the workflow branches to the lower path of the credit workflow (click “Decision Is Active” on the lower branch).

If the party is a business, the business credit adapter (i.e. FICO SBSS/Liquid Credit) is automatically selected.

Now it’s time to transition to the Application-level credit analysis/decisioning workflow (i.e. “Analyze Credit MicroWorkflow”). This portion of the workflow begins once the “Run Credit Micro-Workflow” has completed for all parties… in fact, this is the first step in the “Analyze Credit Micro-Workflow” flow – verifying that credit has been run for all applicable parties associated with the application.

If credit has been run for all applicable parties, the workflow moves on to the Scorecard evaluation step.

As mentioned previously, while automatically triggered by the workflow, Scorecards (and Scorecard Criteria) are configurable by you:

Next (and once the Scorecards have been run successfully – and again, the process is orchestrated automatically by the workflow), we need to determine the application’s credit rating.

The Run Credit Rating Matrix Rules step in the workflow triggers another configuration in Q2 Origination. Similar to Scorecards, and you can configure any number of credit/risk ratings in Q2 Origination:

Applicable Credit Rating values are applied to Applications based on configurable mapping logic.

For example (in this scenario), in order to receive an “A” Credit Rating, the Scorecard evaluation performed in the previous step of the workflow must result in a Total Score of 400 or greater.

Again, the Credit Rating assignment is orchestrated automatically by the workflow. Once complete, the workflow determines the Application’s credit decision status.

Based on the Credit Rating, the Application can fall into 1 of 3 credit decision status: • Auto Approve • Manual Review • Auto Decline

You have complete control over the logic:

If the application’s credit decision status is “Auto-Approve” or “Manual Review”, the workflow automatically proceeds to the Pricing Generation step.

Pricing – like Scorecards and Policy Conditions – are configurable by you. When pricing is triggered during the workflow, the Rate Cards associated with the loan product (which we covered earlier) are accessed automatically to determine which are applicable to the loan.

Typically, a Rate Card is configured for each loan product (however, multiple loan products can leverage a single Rate Card).

Each Rate Card contains multiple pricing details which are associated with an application Credit Rating. So, if an application receives an “A” Credit Rating as a result of the Scorecard evaluation step of the workflow, the application is eligible for any of the pricing details with a “A” Credit Rating reference.