Consumer Lending

Overview

This example demonstrates timveroOS configuration for a consumer lending product offering personal loans between $1,000 and $25,000 with terms from 12 to 60 months. The configuration uses automated workflows and credit assessment processes.

Business Scenario

Target Market

• Individual borrowers seeking personal loans

• Purposes: debt consolidation, major purchases, home improvements

• Credit score range: 600-850

• Income verification required

Product Parameters

• Loan amounts: $1,000 - $25,000

• Terms: 12, 24, 36, 48, or 60 months

• Interest rates: 5.99% - 23.99% APR (risk-based)

• Origination fee: 1-5% (credit tier dependent)

Risk Considerations

• Unsecured lending with creditworthiness assessment

• Automated decisioning for qualified applicants

• Manual review for borderline cases

• Income-to-debt ratio limitations

Operational Requirements

• Automated decision processing

• Automated document generation

• Electronic signature capability

• Multi-channel application support (online and branch)

Configuration Components

Credit Product Structure

Base Product: Personal Loan

• Name: Personal Installment Loan

• Product Code: PIL-001

• Status: Active

• Documentation Requirements:

  • Loan agreement

  • Truth in Lending disclosure

  • Privacy notice

  • Payment schedule

Additives Configuration:

Additive 1: Prime Tier

• Credit Score Range: 720-850

• Loan Amounts: $5,000 - $25,000

• Interest Rate Range: 5.99% - 9.99%

• Origination Fee: 1%

• Automatic Approval: Yes

Additive 2: Near-Prime Tier

• Credit Score Range: 660-719

• Loan Amounts: $2,500 - $20,000

• Interest Rate Range: 10.99% - 15.99%

• Origination Fee: 3%

• Manual Review: If DTI > 40%

Additive 3: Subprime Tier

• Credit Score Range: 600-659

• Loan Amounts: $1,000 - $10,000

• Interest Rate Range: 16.99% - 23.99%

• Origination Fee: 5%

• Manual Review: Always required

Workflow Design

Primary Scoring Workflow Components:

1. Load Credit Bureau Data

   • Provider: Experian

   • Products: Credit Report + Score

   • Timeout: 30 seconds

2. Load Banking Data

   • Provider: Tink

   • Scope: 12 months transaction history

   • Purpose: Income verification

3. Calculate Key Metrics

   Expression Nodes:
   - creditScore: Extract FICO score
   - monthlyIncome: Calculate from bank data
   - debtToIncome: Total obligations / income
   - paymentToIncome: Proposed payment / income

4. Risk Assessment Logic

   Switch Node:
   - If creditScore < 600: Save Alert "Below minimum score"
   - If debtToIncome > 50%: Save Alert "DTI exceeds limit"
   - If paymentToIncome > 28%: Save Warning "High payment burden"
   - Else: Continue to profile

5. Profile Creation

   Save to Profile:
   - score: creditScore
   - netMonthlyIncome: monthlyIncome - obligations
   - riskTier: Calculated based on score bands
   - maxPayment: monthlyIncome * 0.28

Offer Script Example

function calculateOffer() {
    const score = profile.get("score");
    const netIncome = profile.get("netMonthlyIncome");
    const riskTier = profile.get("riskTier");
    
    // Check tier eligibility
    if (score < 720 || score >= 600) {
        const tierConfig = getTierConfiguration(riskTier);
        
        // Calculate maximum affordable amount
        const maxAffordable = calculateAffordability(
            netIncome, 
            tierConfig.maxTerm, 
            tierConfig.baseRate
        );
        
        // Apply tier limits
        const maxAmount = Math.min(
            maxAffordable, 
            tierConfig.maxAmount
        );
        
        if (maxAmount >= tierConfig.minAmount) {
            return {
                minAmount: tierConfig.minAmount,
                maxAmount: maxAmount,
                minTerm: 12,
                maxTerm: tierConfig.maxTerm,
                rate: tierConfig.baseRate + getRiskAdjustment(score),
                originationFee: tierConfig.originationFee
            };
        }
    }
    
    return null; // No offer if criteria not met
}

Integration Configuration

Credit Bureau Integration

• Provider: Experian

• Authentication: Certificate-based

• Environment: Production

• Mapping Focus: Credit score, payment history, total debt

Open Banking Integration

• Provider: Tink

• Authentication: OAuth 2.0

• Consent Flow: Embedded widget

• Mapping Focus: Income patterns, account stability

Document Signature Integration

• Provider: DocuSign

• Authentication: API key

• Templates: Pre-configured for each document type

• Workflow: Automatic sending upon approval

Document Templates

Loan Agreement Structure:

• Borrower information section

• Loan terms (merged from offer)

• Payment schedule table

• Legal disclosures

• Signature blocks

Key Merge Fields:

{{participant.firstName}} {{participant.lastName}}
{{offer.amount | currency}}
{{offer.term}} months
{{offer.rate | percentage}} APR
{{offer.monthlyPayment | currency}}

Implementation Steps

Step 1: Foundation Setup

1. Create "Personal Lending" department

2. Define roles: Loan Officer, Underwriter, Manager

3. Set up decline reason catalog

4. Configure document types

Step 2: Product Configuration

1. Create Personal Installment Loan product

2. Upload document templates

3. Set general product parameters

4. Save and version product

Step 3: Integration Setup

1. Configure Experian connection

2. Set up Tink integration

3. Test both connections

4. Create income and credit mappings

Step 4: Workflow Development

1. Design scoring workflow in Workflow Tool

2. Add data source nodes

3. Configure calculation expressions

4. Set up decision routing

5. Test with sample data

Step 5: Pricing Configuration

1. Create offer scripts for each tier

2. Link scripts to additives

3. Test calculations with various profiles

4. Validate against business rules

Step 6: Additive Activation

1. Create three additives (Prime, Near-Prime, Subprime)

2. Assign appropriate offer scripts

3. Set activation status

4. Verify product completeness

Step 7: Process Testing

1. Create test applications

2. Run through complete workflow

3. Verify offer generation

4. Test document creation

5. Validate notification sending

Step 8: User Training

1. Train loan officers on application entry

2. Train underwriters on manual review

3. Document standard procedures

4. Create quick reference guides

Technical Considerations

Performance Optimization

• Cache credit bureau responses for 30 days

• Implement connection pooling for APIs

• Use asynchronous document generation

• Index database on commonly queried fields

Scalability Planning

• System can handle multiple concurrent application processes

• Horizontal scaling through load balancing

• Database partitioning by date

• Data archival configuration

Integration Dependencies

• Maintain fallback credit bureau

• Handle open banking consent failures

• Queue document generation requests

• Implement circuit breakers for external services

Customization Requirements

Standard configuration covers core functionality. SDK customization may enhance:

• Custom credit scoring models

• Proprietary income calculations

• Enhanced fraud detection

• Mobile application interfaces

Note: SDK customization requires development resources. The configuration described uses standard system features.

Variations and Extensions

Channel-Specific Modifications

Online Channel:

• Simplified application form

• Real-time decision display

• Self-service document upload

• Automated disbursement

Branch Channel:

• Comprehensive application form

• Assisted document collection

• Manager override capabilities

• In-person verification options

Product Variations

Debt Consolidation Focus:

• Higher maximum amounts

• Extended terms available

• Payoff verification required

• Creditor payment service

Emergency Loan Option:

• Lower minimum amounts ($500)

• Expedited processing

• Simplified documentation

• Higher rates for speed

Success Metrics

Operational Metrics Tracked

• Application-to-decision time

• Manual review completion time

• Document generation status

• Support ticket resolution

Business Metrics

• Approval rate by tier

• Portfolio distribution

• Average loan amount

• Prepayment rates

Related Configuration Areas

• SME Lending: More complex financial analysis

• Secured Lending: Collateral integration

• Multi-Participant: Guarantor additions

• Common Patterns: Two-stage scoring

Next Steps

• Adapt configuration to institutional requirements

• Define specific risk thresholds

• Establish monitoring procedures

• Plan phased rollout approach

---

For additional support, consult your implementation team or system documentation.