IMPROVE CREDIT SCORING

Predictive models use customer data more effectively to better differentiate levels of applicant risk

RISK BASED PRICING

Segment customers by risk factors more quickly and accurately, rapidly forming credit risk grades

REDUCE FRAUD

Create ‘data detectives’ to spot patterns that are not obvious to humans or traditional models

FAST TIME TO VALUE

Models are built and deployed within two weeks, easily integrating into current insurance application workflows

BETTER CUSTOMER EXPERIENCE

XAI models allow businesses to fully understand and explain predictions in a GDPR compliant manner

The challenge

Beyond credit adjudication, in terms of determining an individual probability of default, running a profitable loan book requires an accurate understanding of the relationship between default risk and return. This means that lenders also need to know, with confidence, not only which applicants to reject but also at what price applicants should be accepted.

Solution: Explainable AI from Logical Glue

XAI for risk-based pricing acts as a natural extension to credit scoring, enabling businesses to avoid the riskier and more costly one-price-for-all approach. The Logical Glue platform allows lenders to segment customers by risk factors more quickly and accurately, rapidly forming credit risk grades, which can potentially be used for differential pricing. Low-risk customers can be acquired and retained with confidence at more competitive prices against other lenders. Similarly high-risk customers can either be priced profitably according to their risk, or rejected.

Get in touch

Let Logical Glue build you a brighter business future.

Logical Glue’s team of highly experienced machine learning experts can help you to harness the explosive power behind XAI and Data Science: our cost-effective solution provides business-critical assurance through our expert marrying of cloud-based machine learning, data science and lending acumen as an intuitive learning experience.

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