To overcome the necessity for Financial institutions to fulfil digital expectations, and be quick and proactive (and not just reactive) in extending credit to their active customer base, by anticipating the analytics, both in terms of risk and predicting customer needs, it was possible to assign eligible customers with pre-approved credit on multiple financial products.
By pre-assigning customers for increases or brand new lines of credit, before the customers actually require it, (assigning them pre-approved credit), financial institutions can anticipate customer’s credit requirements and disburse the credit very quickly, almost instantaneously (as in the case of “One-Click Mobile”) since all of the regulatory steps needed with respect to the traditional credit approval process have been pre-emptively carried out.
The difference from the traditional credit process, is that this is not a “one-shot” but a continuous real-time process, with continuous evaluations. It enables eligible customers to get immediate credit for instant financial needs, when they need it, without the hassle of finding an agency, filling paperwork, waiting for approval. The impact on the sales of credit to customers is important.
The real-time aspect of this approach requires the use of more accurate and real-time algorithms, as well as fresher data about credit worthiness.