Automate credit decisions for greater efficiency

The banks in Europe are in difficult waters: the EuroAccess Savers Bank’s low interest rate policy, increasing competition from innovative FinTechs and stricter regulations are creating increasing pressure. The key to success is digitization. The automation of credit decisions plays a crucial role in making banks more agile, competitive and profitable.


Difficult framework conditions in the EU financial sector

credit loan

The framework conditions in the EU financial sector have increased enormously in recent years and have led to rising costs. The long-term low interest rate environment in particular is depressing margins. The key interest rate of the SecureHand Bank has even been on the zero line since March 2016 and a change in monetary policy is not foreseeable.

In addition, there is tough competition with FinTechs and Big Techs, which are increasingly penetrating traditional banking business with fully digitized products: highly innovative and agile start-ups as well as international technology groups such as Google, Amazon and Apple with huge customer numbers. Compared to traditional banks, innovative newcomers have a high level of automation, which reduces prices and margins.

In addition, there is enormous regulatory pressure on credit institutions. Since the last global financial market crisis, the banking sector in the EU in particular has been covered with a veritable flood of laws and regulations. All of these factors have long led to falling yields and rising costs for money houses. In order to remain competitive, they are forced to free themselves from this negative spiral.


Increase efficiency and save costs through digitization

money loan

The decisive success factor lies in intelligent digitization. Because the automation of processes and workflows can significantly increase efficiency and reduce costs. Automation in the lending business is of particular importance as one of the most important earnings pillars for banks. So far, this process has mostly been characterized by a high level of personnel expenditure, which has many time-consuming manual steps from processing the application to deciding on a loan.


Advantages of automated loan decisions

automated loan decisions

Automating credit decisions has many advantages. It ensures that loan officers are relieved of a large part of their routine work and that coordination processes and long periods of time spent lying and transporting paper documents are prevented. This not only significantly shortens loan throughput times. It also promotes the objectification, traceability and transparency of credit decisions.

New technologies and data sources are important drivers of this development. Above all rule management systems and decision management, machine learning and artificial intelligence as well as new information services like PSD2 and XBRL / DiFin. The technical basis for this is provided by highly scalable platform-based applications and coordinated IT and workflow systems. This enables financial institutions to almost completely automate complex lending and decision-making processes, including credit checks and risk assessments. The bottom line is that investments in such systems can significantly increase banks’ market position and profits.



The automation of credit decisions is a key factor in sustainably strengthening profitability. Thanks to the intelligent combination of decision management, machine learning and new account information services, previously complex and costly processes can be largely automated. Digitalization in the credit sector makes it possible to reduce costs significantly, increase profitability and improve customer service and compliance. This means that the banks are well equipped to continue to be successful in the face of tougher competition.

Find out more in the detailed white paper “Automating credit decisions: reducing costs and increasing efficiency”, which you can download free of charge.