What is the Aunalytics Loan Default Risk Smart Feature?
Loan underwriting represents one of the most significant risk factors for financial institutions. Through nearly a decade of work with financial institutions, Aunalytics has developed an algorithm for training machine learning models that learn from your organization’s historical loan default data about the most significant factors predicting loan defaults among your customers. The Aunalytics Loan Default Risk Smart Feature™ provides a score of loan default risk based only on data available at the time of a credit application.
Our multi-indicator risk model significantly improves upon the accuracy provided by purely statistically-based risk models such as FICO scores and the actuarial tables used by underwriters to set interest rates. Although these basic statistical models are general guides to default risk, our model calibrates and quantifies how those variables and others impact loan defaults across loans of all types. For example, although low FICO scores are predictive of higher risk, how predictive they are depends on other factors such as the type of loan (mortgages, HELOCs, business loans, etc.), term, payment frequency, and so forth. For example, in one model trained using our proprietary algorithm on loan default data from one of our clients, the model discovered that for small business loans, payment frequency was actually more predictive of loan default than credit score. In other words, even borrowers with high credit scores would default on small business loans with monthly payment terms at a rate that wasn’t that different from borrowers with low scores. When payments were made semi-annually, however, credit scores became a much more predictive factor of loan default risk.
By digging deep into the complex relationships between different loan risk factors, our algorithm can produce impressive results. Performance tests on datasets have shown this algorithm to be highly precise, with one model trained on one of our client’s data the ability to predict 30% of loan defaults in a benchmark dataset with near perfect accuracy (0.99 precision at 0.30 recall) and could return consistently reliable results at higher levels of recall. The loan default risk models trained with our proprietary algorithm provide extraordinary business value to our clients in the financial services industry by flagging risky loans and providing a deeper understanding of risk factors involved with loan applications beyond basic ratings provided by an applicant’s FICO score.
Aunalytics is a data platform company delivering answers for your business. Aunalytics provides Insights-as-a-Service to answer enterprise and mid-sized companies’ most important IT and business questions. The Aunalytics® cloud-native data platform is built for universal data access, advanced analytics and AI while unifying disparate data silos into a single golden record of accurate, actionable business information. Its DaybreakTM industry intelligent data mart combined with the power of the Aunalytics data platform provides industry-specific data models with built-in queries and AI to ensure access to timely, accurate data and answers to critical business and IT questions. Through its side-by-side digital transformation model, Aunalytics provides on-demand scalable access to technology, data science, and AI experts to seamlessly transform customers’ businesses.
Aunalytics to Feature Advanced Analytics Solution in September at Industry Events Attended by New Jersey, Minnesota, Pennsylvania, and Iowa Bankers and Credit Unions
Leading Data Platform Provider Will Demonstrate How Community Banks and Credit Unions Can Compete with National Financial Institutions Using Aunalytics Daybreak for Financial Services
South Bend, IN (September 8, 2021) - Aunalytics, a leading data platform company delivering Insights-as-a-Service for enterprise businesses, will feature its advanced analytics solution for midsize community banks and credit unions at five industry events attended by bankers from New Jersey, Minnesota, Pennsylvania, and Iowa in September. Aunalytics Daybreak™ for Financial Services enables bankers to more effectively identify and deliver new services and solutions for their customers so they can better compete with large national banks. Aunalytics will also feature Daybreak for Financial Services at Fiserv’s Signature Conference.
Aunalytics will demonstrate Daybreak for Financial Services at:
- New Jersey Pennsylvania CrossState Fall Leadership Conference, September 9-11
- Minnesota Credit Union Network Lead 21 Fall Leadership Conference, September 10-12
- Fiserv Signature Conference, September 12-15
- Pennsylvania Association of Community Bankers Convention 2021, September 16-18
- Iowa Bankers Association Annual Conference, September 19-21
Aunalytics’ Daybreak for Financial Services offers the ability to target, discover and offer the right services to the right people, at the right time. The solution empowers mid-market financial institutions with advanced analytics and valuable business insights to improve customer relationships, strategically deliver new products and services through data-driven campaigns, and increase competitive advantage with Aunalytics’ side-by-side digital transformation model.
Built from the ground up for credit unions and midsize community banks, Daybreak for Financial Services is a cloud-native data platform that enables users to focus on critical business outcomes. The solution seamlessly integrates and cleanses data for accuracy, ensures data governance, and employs artificial intelligence (AI) and machine learning (ML) driven analytics to glean customer intelligence and timely actionable insights that drive strategic value.
With daily insights powered by the Aunalytics cloud-native data platform, industry intelligence, and smart features that enable a variety of analytics solutions for fast, easy access to credible data, financial services users can find the answers to such questions as:
- Who are my current customers that have a loan and not a deposit account?
- Who has a mortgage or wealth account with one of my competitors?
- Which customers with a credit score above 700 are most likely to buy a HELOC?
- Which loans were modified from the previous day?
- Who are my current members with a HELOC that are utilizing less than 25% of their line of credit?
“As customer interactions become increasingly digital, mid-market banks and credit unions are challenged with maintaining the competitive advantage that local, personalized, white-glove service has traditionally afforded them,” said Rich Carlton, President, Aunalytics. “At the same time, they struggle to achieve the valuable business insights that untapped data could provide to improve their operations. Daybreak for Financial Services mines transactional bank data every day to deliver timely insights that enable mid-market banks to more efficiently target and deliver new services and solutions for their customers so they are better positioned to compete with national banks. We look forward to meeting with bankers from New Jersey, Minnesota, Pennsylvania, and Iowa and demonstrating how Daybreak helps them anticipate customer needs to deliver the right products and services at the right time to achieve a critical edge.”
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About Aunalytics
Aunalytics is a data platform company delivering answers for your business. Aunalytics provides Insights-as-a-Service to answer enterprise and mid-sized companies’ most important IT and business questions. The Aunalytics® cloud-native data platform is built for universal data access, advanced analytics and AI while unifying disparate data silos into a single golden record of accurate, actionable business information. Its Daybreak™ industry intelligent data mart combined with the power of the Aunalytics data platform provides industry-specific data models with built-in queries and AI to ensure access to timely, accurate data and answers to critical business and IT questions. Through its side-by-side digital transformation model, Aunalytics provides on-demand scalable access to technology, data science, and AI experts to seamlessly transform customers’ businesses. To learn more contact us at +1 855-799-DATA or visit Aunalytics at https://www.aunalytics.com or on Twitter and LinkedIn.
PR Contact:
Denise Nelson
The Ventana Group for Aunalytics
(925) 858-5198
dnelson@theventanagroup.com
Iowa Bankers Association 2021 Annual Convention
Iowa Bankers Association 2021 Annual Convention
Veterans Memorial Auditorium, Des Moines, IA
Aunalytics is excited to attend the IBA 2021 Annual Convention as a Silver Sponsor
Aunalytics will be demonstrating Daybreak™ for Financial Services as a Silver Sponsor at the Iowa Bankers Association Annual Convention in Des Moines, IA. Daybreak enables community banks to more effectively identify and deliver new services and solutions to their customers so they can better compete with large national banks.
Pennsylvania Association of Community Bankers Convention 2021
Pennsylvania Association of Community Bankers Convention
Fairmont Scottsdale Princess Resort, Scottsdale, AZ
Aunalytics is excited to attend the 2021 PACB Convention in Scottsdale, AZ
Aunalytics is excited to attend the Pennsylvania Association of Community Bankers Convention 2021 in Scottsdale, AZ as a Partner Sponsor. We will be demonstrating Daybreak™ for Financial Services which enables community banks to more effectively identify and deliver new services and solutions to their customers so they can better compete with large national banks.
