Juris Mindcraft is an artificial intelligence (AI) that uses data mining and machine learning to make explainable recommendations of those with credit history. The AI engine in Mindcraft can be used to calculate an existing customer's propensity to buy based on their past behaviour, provide early warning (up to 6 months ahead) for customers that may go rogue or become NPLs. These results will be generated in reports for easier understanding. Combining the power of your business expertise and statistical measures, Juris Mindcraft has proven to be precise and accurate in scoring your customer's credit worthiness. Unlike many nascent AI engines currently in the market, the technology used in Mindcraft is mature and sophisticated. In fact, it has been tried and tested in real life scenarios, with authentic data.
Juris Mindcraft helps you build credit scoring models that assess the credit worthiness of a customer. These models also provide recommendations such as loan approval, review customer credit worthiness to trim or increase their credit line, or predicting customer behaviour such as likelihood of default or to buy.
Juris Mindcraft helps you to manage the balancing act between profit and risk in an efficient and effective way. With Juris Mindcraft, these decisions can be made swiftly, provided you have the proper infrastructure and methodology in place. You will no longer have to rely on unsupported judgment calls. To boot, it is created to be transparent to guarantee the effortless process of auditing. Not to mention, reducing time-to-market as it is equipped with technology to support quick decision-making.
What Can Mindcraft Do for Your Business?
Tried and Tested Predictive Abilities
Juris Mindcraft is able to learn your customers' past behaviour and provide result-based recommendations. Combining the power of your business expertise and statistical measures, Juris Mindcraft has proven to be precise and accurate in scoring your customer's credit worthiness, propensity to buy, and ability to identify digital marketing strategies that are most likely to generate conversion.
Juris Mindcraft provides you with the freedom to build financial scorecards based on several methods:
- Business Rules defined by you.
- Statistical Analysis such as Logistic Regression, KS Statistics, Weight of Evidence, ROC Curve etc.
Fret not, as the engine is being revised and upgraded from time to time. Any additional features can be included in Juris Mindcraft by integrating it with the system.
Use Cases for the Financial Industry
Juris Mindcraft helps to make intelligent business decisions, driving the financial industry to generate high value and differentiated financial services, on top of offering a superior customer experience.
Non-performing loans (NPLs) are a prevalent issue for both lender and borrower. A bank loan is considered non-performing when more than 90 days pass without the borrower paying the agreed instalments or interest. Most banks address this issue by automating the collections process. However, the automated processes are not flexible enough to recognise the patterns of customer behaviour. Therefore, banks are unable to identify NPLs and even prepare for them.
Juris Mindcraft forecasts the future performance of loan accounts and detects potential NPL accounts based on the five C’s of credit (character, collateral, capacity, condition, and conduct of the loan accounts). This enables banks the flexibility to pivot and take precautionary measures and actions on the potential NPLs through sets of treatment strategies that can be configured based on business requirements.
It is common that collectors are not able to approach all delinquent customers due to a large number of cases. In addition, each customer and their circumstances are unique. Collectors would need to be able to recognise the different groups of at-risk customers, based on their ability and willingness to pay. The challenge is to find the right collection strategies and actions to avoid calling low-risk customers who will eventually self-cure, and also, to be careful to not alienate potentially profitable customers who might be going through a temporary stage of financial hardship.
Self-curing is a strategy that provides a grace period for customers to proactively pay off their outstanding balance before investing the organisation's resources to contact them to make a direct request for that payment. Self-curing predictions are assisted by a set of predictive rules generated by an artificial intelligence (AI) model. By using data mining and machine learning techniques, the AI model in Juris Mindcraft 'studies’ static and past behavioural information of accounts and makes predictions based on its learned experience. This allows collectors to focus on customers with higher probability of defaulting. Collectors can then use low-cost channels such as calls and text to reach customers with less risk. With this approach, collectors can reduce both the cost of collections and the volume of loans to be resolved through restructuring, sale, or write-off.
The COVID-19 crisis has triggered specific implications from managing and mitigating credit risk. The risk of loss arising from a borrower being unlikely to pay its loan obligations in full or the borrower is more than 90 days past due on any material credit obligation may impact all credit-sensitive transactions, including loans, securities, and derivatives. Changes in creditworthiness differ by sector and subsector to a greater degree than they did in previous recessions. Hence, the ability to accurately identify credit risk during the scoring and loan approval stage is a huge challenge.
Juris Mindcraft uses Machine Learning modelling as a basis to better predict the potential risk and likelihood of a current loan defaulting. Its AI-based algorithm helps crunch huge quantities of customer data in a few seconds to verify the customer’s creditworthiness and determine whether to grant a customer a loan. Juris Mindcraft enriches the credit risk management process by reducing time-to-market and ensuring accurate credit scores.
In traditional financial services, only those who are in the credit system will be given access to loans. However, people outside the credit system such as the unbanked, unserved, or underserved market would not qualify to access such services. This is because the banks have no way of assessing their creditworthiness due to the lack of traditional credit data/history.
Juris Mindcraft's Machine Learning model takes into account nontraditional data sources such as financial transactions, web traffic, mobile devices, and public records that can be used to assess the creditworthiness of an individual or a business without a credit history. Digital banks and Fintechs can leverage alternative data to expand their services to credit-invisible customers to increase market reach. This more granular and individualised approach also allows banks and financial institutions the ability to more accurately assess each borrower and allows them to provide credit to people who would have been denied under the traditional scorecard system.
Industries have come to realise that every customer journey is unique. The challenge for origination and collection officers are to find the right set of actions for an individual that will move them to the next step in guaranteeing a loan or actions in collecting a bad debt.
Juris Mindcraft recommends the next best actions to origination and collection officers enabling them to make faster, more accurate, and automated decisions backed by data insights. Ultimately, Juris Mindcraft helps officers to build more meaningful interactions, taking corrective actions, and making offers that actually meet customer's needs.
Origination: Juris Mindcraft analyses the creditworthiness of customers. For credit-worthy customers, Juris Mindcraft will suggest officers to approve applications while the customers who are not credit-worthy, Juris Mindcraft will suggest officers to ask them for a bank guarantee.
Collection: Juris Mindcraft analyses if the customer is a bad paymaster. If the customer is predicted to be a bad paymaster, the next best action of aggressive treatment (SMS, calls, P2P) and suspension/termination warning will be suggested to the officer. Juris Mindcraft will suggest the officer to resolve disputes if the delinquency is due to customer dissatisfaction.
Customer acquisition cost (CAC) is a key target for business, especially for telemarketers. It is important for a business to know each customer's valuation so they know how much of its resources they should spend on a customer so as to be profitable. Many contact centres struggle to prioritise tasks for agents and to make the best use of agents' time. Since there are only so many conversions you can have in a day, the ability to identify quality leads quickly will help agents work more efficiently plus increase customer satisfaction.
Implementing AI can help optimise your lead generation efforts and reduce your CAC. Juris Mindcraft makes use of the existing customer database to mine potential customers who could be approached or has high lifetime values. Juris Mindcraft improves and optimises your telemarketing efforts to reduce customer acquisition costs by sorting through hundreds of leads to find the customers most likely to want your services or products. This will enable your agents to engage and spend more time with high-quality leads increasing conversion and reducing the number of calls made.
Juris Mindcraft Advantage
The Juris Mindcraft advantage goes beyond statistics and manual expert rules. Juris Artificial Intelligence (AI) Algorithm has the ability to learn the behaviour of your existing customers by looking at their attributes that lead to high potential to buy into an offering, or to the probability of going delinquent. The AI Algorithm will automatically create different profiles for good, doubtful, and bad customers.
With Juris Mindcraft, your leading decision will be supported by facts. The AI is not a black box but will tell you the reasoning for its recommendations and will highlight specific attributes which it considered critical in its decision-making process.
Juris Mindcraft also comes with a credit limit determination framework which employs proven mathematical approaches to compute the optimum credit limit for a customer.
New Frontiers with Juris Mindcraft
With Juris Mindcraft, we provide you with a flexible platform to strategise your risk assessment policy, design the system for your business needs, and finally automate your business operation whenever possible.
Juris Mindcraft Core Functionalities
- Integrated credit application solution from credit origination to credit scoring, limit determination, approval process workflow, and disbursement.
- Calculate a customer's propensity to buy into an offering or product based on his/her past transactions and CRM behaviour.
- Use Mindcraft's predictive abilities to identify digital marketing strategies that are most likely to generate conversion.
- Find new customers in social networking sites who are similar to your existing ‘high profitability potential’ customers.
- Versatile scoring engine allows you to combine your business expertise with statistical credit risk measures.
- Give user the freedom to build scorecards from Expert Rules, Artificial Intelligence, and statistical methods.
- Help Credit Manager to balance risk against profit pursuit, increasing operational efficiencies.
- State-of-the-art approval workflow engine speeds up credit evaluation and approval process.
- Multi-tier scoring approach.
- Integration to external rating systems such as CCRIS and CTOS.
- Fully web-based for easy deployment plus lower maintenance and operating costs.
- Integrate with credit bureaus of other countries for international users.
Having said all these, we sincerely invite you to come and test-drive our solution yourself.
We also provide end-to-end management of the customer from loan origination to collection. For more information, you may refer to: