The client’s credit risk application was labour-intensive, and implementing changes was cumbersome. With the application approaching end of life, the client decided to modernize its credit scoring process by implementing Virtusa’s Micro API-based solution hosted on Pega’s Customer Decision Hub. This helped the client scale according to its needs, with higher efficiency, greater visibility, and significantly lower operational costs
The ChallengeThe client’s analysts calculated credit scores using macro-based Microsoft Excel and a Java-based serviceability engine.
Processing was entirely manual and cumbersome, as it involved multiple steps across different, disparate applications, and this resulted in no audit trails. Additionally, the credit models developed by the client’s data science teams had to be separately coded into the serviceability engine. This increased the dependency on credit analysts and added to the client’s operational costs. There was limited visibility into the overall process, and implementing changes was time-consuming.
The SolutionVirtusa harnessed the synergy between our long-standing partnership with the client and expertise on Pega technologies to implement a unique Micro API-based solution hosted on Pega’s Customer Decision Hub (CDH).
This modernized architecture offered accurate and integrated credit scoring with a high degree of automation. With this capability, analysts could run deals with different components quickly, unlike in the earlier solution that was completely distributed and was time-consuming. The new model also offered accurate audit capabilities as it was configured to log every transaction and calculation, and sync with the central warehouse. Credit models could now be imported directly into the decision hub for risk scoring, and this eliminated the cost of rework associated with coding.
The legacy solution did not provide any visibility to the business and IT teams. The current solution being on a Strategy Canvas provided excellent visualization for business and IT teams that enabled collaboration in real-time to make business decisions.
Virtusa’s solution is a first of its kind in the Asia Pacific region, where a credit risk solution was implemented using Pega CDH.
The BenefitThe client was able to scale-on-demand and achieve high efficiency while saving operational costs, in its credit scoring process.
Key benefits included:
- 50% faster time-to-market: The standard implementation time for credit risk applications is 16 weeks. Virtusa implemented the Micro API-based solution on Pega CDH in 8 weeks.
- Up to AUD 1 million savings annually: The Pega CDH-based solution was considered for other lines of business as well, helping the client save on licensing costs of AUD 1 million.
- Savings on FTE costs: High degree of automation and intuitive user workflows enabled the client to reduce their workforce, thereby saving on FTE costs.
- Eliminates cost of rework: Importing the credit risk models eliminated the cost of rework substantially for the customer
- Consistent decision-making: Business and IT teams now have greater visibility into the credit scoring process and could now make real-time decisions collaboratively