New tool can support lenders with intelligent pricing, tailored affordability outcomes, and streamlined scorecard models
Mortgage technology provider fivova has launched Optimo, a decisioning engine built to help lenders deliver agile, data-driven, and personalised outcomes for their customers.
The tool integrates affordability models, scorecards, and pricing into one seamless decisioning product. As a result, Optimo reduces a product’s speed to market from an average of seven to 10 days to a matter of hours.
Built using finova’s market leading Apprivo2 technology, Optimo is a configurable software as a service (SaaS) tool and slots into any existing originations system. While many mortgage products assess affordability based solely on loan-to-value ratios, the tool evaluates affordability on a case-by-case, considering multiple factors.
The new product also enables lenders to evolve their pricing strategy, benefitting from data-driven and risk-based pricing that can service quicker price changes.
Lenders using Optimo can also generate accurate scorecards, allowing them to cater to customers whose financial profile – such as being self-employed – may have previously affected their ability to secure a loan.
Another key feature of the new engine is its ability to react to market changes with speed, meaning products can be accurately repriced within a matter of hours. It also opens the opportunity for lenders to provide ‘always on’ pricing that reduces the impact of last-minute price changes on brokers, safeguarding clients and their mortgage applications.
“Whenever a customer applies for a mortgage or a loan, the lender must make several rapid decisions about risk, liability, and affordability,” said Chris Little (pictured), chief revenue officer at finova.
“In the past, lenders have shouldered significant risks when using traditional rate models, and this has sometimes led to financial losses and dissatisfied customers. Optimo, our new decisioning engine, is designed to revolutionise the process, protecting our lender partners from risk while ensuring borrowers can access the most personalised and fair rates on the market.
“In a fast-moving environment, innovative tech like Optimo is key to ensuring financial institutions can service customers quickly and fairly.”
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