Pareto Pulse makes Great Use of Analytics to bring Amazing Alternative Lending Solutions

The financial services market is being disrupted and reshaped by new and incumbent alternative financial service providers. This is affecting the businesses of traditional financial institutions, who feel that they would not thrive well in this evolutionary market. Financial Institutions are in need of solutions that combine big data predictive analytics techniques, state-of-the-art technology, deep domain expertise in credit as well as the financial institutions' own customer relationship management skills and local market know-how. This is where Pareto Pulse comes in.

Pareto Pulse’s solutions combine the agility and innovation that power alternative lending solutions with the experience, risk management practices and prudent methodologies that are typical of traditional lenders. The company’s clientele includes retail banks, peer-to-peer lenders, credit card issuers as well as specialized lenders.

For SME (small and medium enterprise) companies, Pareto Pulse creates a credit risk model based on four factors:

  • Key individuals who are part of the enterprise
  • The market segment in which the company operates
  • Revenue generation activities and cost structure
  • Financials of the company including statements, etc.

Pareto Pulse offers the following features through its solutions and offerings:

  • Real-time, multi-channel credit approval engine
  • Customized credit scoring through the Pareto Pulse engine
  • Rule-based credit decisions
  • Dynamic risk-based pricing
  • Exclusive dashboard to monitor portfolio-level growth and performance

Pareto Pulse’s analytics driven practice is characterized by suite of capabilities:

  • Analytical processes include credit analysis, credit fraud identification and prevention, credit pricing, collections, and portfolio management.
  • Analytics driven by various types of business rules that are defined using a combination of industry-wide best practices together with rules that reflect the online lender’s industry-specific know-how and strategy.
  • In addition to analytics that are deployed at the point of credit origination, after-the-fact analyses are also applied to the credit portfolio via built-in dashboards in order to identify outliers and to track ongoing data anomalies.
  • A complete cloud-based solution that integrates with the online lender’s own systems via an extensive set of APIs.
  • A comprehensive data mart which maintains proprietary data and powers the analytics and the dashboards.