Automated Prequalification Feedback for Financing Engagement
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Solution Overview
Problem
In the financial industry, customers who are not prequalified for financing programs often do not receive follow-up engagement or information on why they were not prequalified, leading to missed opportunities for both the customer and the lender.
Innovation Solution
A system and method that automatically receives identification information from users on merchant or lender websites, conducts prequalification determinations without user request, and provides personalized engagement notifications and guidance instructions for customers to address any missing information or correctable criteria, enabling them to potentially become prequalified for financing programs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If automated prequalification determination is conducted without user request, then loan volumes can increase with minimal increased risk, but customers who are not prequalified receive no follow-up engagement and the opportunity for engagement is lost
Solution Approach 1:
The system implements feedback by notifying customers of their prequalification status and providing guidance on what information or actions are needed to become prequalified. This closed-loop feedback mechanism transforms one-time automated determinations into ongoing engagement opportunities, allowing customers to understand why they were not prequalified and what steps to take to improve their eligibility.
Solution Approach 2:
The system performs preliminary prequalification determinations automatically without requiring users to initiate the process. By conducting these assessments in advance and proactively notifying customers of results (including non-qualification reasons), the system captures engagement opportunities before customers would otherwise abandon the process, thereby increasing both productivity and reducing information loss.
2Extent of automation
If traditional automated application process is used, then the process can be executed via software programming with algorithms and policies, but customers receive no personalized guidance on how to improve their prequalification status
Solution Approach 1:
The system enables customers to self-serve by providing them with personalized guidance instructions that clearly outline what information is missing or what criteria they need to meet. Customers can independently review their status, understand the reasons for non-qualification, and take appropriate actions without requiring manual intervention from lenders, thus maintaining high automation while improving ease of operation.
Solution Approach 2:
The system acts as an intermediary between the automated prequalification algorithms and customers by translating complex algorithmic decisions into understandable, actionable guidance. This intermediary layer communicates the reasons for non-qualification in customer-friendly terms and provides step-by-step instructions, bridging the gap between automated processing and user comprehension.
3Reliability
If prequalification determination is conducted proactively, then engagement opportunities can be captured, but customers are not informed of specific reasons for non-qualification or how to become prequalified
Solution Approach 1:
The system provides comprehensive feedback to customers who are not prequalified, including specific reasons for their non-qualification status and personalized guidance on what information or actions are needed to become prequalified. This feedback mechanism ensures that reliability of the determination is maintained while preventing loss of engagement information by explaining the 'why' and 'how' of non-qualification.
Data Source
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AI summary
A method for providing personalized prequalification of a customer may include receiving identification information of the user associated with user activity on a website of a merchant or lender, conducting a financing program prequalification determination for the user based on the identification information and a set of prequalification criteria without any request from the user for financing, receiving an indication that the user is not prequalified based on the financing program prequalification determination, providing instructions for generation of a prequalification engagement notification at a display of a user device associated with the user responsive to the indication, and, responsive to selection of the prequalification engagement notification, providing one or more guidance instructions for generation at the display of the user device for the user to provide prequalification requirement data for a subsequent performance of the financing program prequalification determination.