Chordiant Software has announced the availability of a new Basel II compliance solution that will enable business users to develop Internal Ratings-Based (IRB) ratings models seeking to reduce the capital requirements for banks and lenders under the Basel II regulations. The Chordiant Decision Management suite enables banks to create a Basel II compliant environment while also realizing the benefits of real time credit risk decisioning and unique “next best action “recommendations for effective customer risk profiling.


Chordiant’s solution is unique among IRB Basel II compliance solutions, allowing users to generate superior and automatically documented ratings models, by merging organisation specific processes with sophisticated mathematical models, all implemented and designed by the people who know these strategies best – the business users/risk managers. This approach allows organisations to save time and money that would otherwise have been used for statisticians to build the risk models, while still allowing banks the advantages of reduced capital requirements available to those lenders with proven risk management initiatives.


The Chordiant Decision Management suite comprises a series of autonomous modules, ranging from model development to analysis, deployment and monitoring in a transparent, IRB founded process. As well as providing a Basel II compliant working environment, this process also allows powerful predictive models to be applied to applicant scoring, risk rating and collection management. Loss on non-performing loans and customers can then be minimized allowing the prices on lending products to be more competitive in a bid to increase a lender’s market share.
Furthermore the Chordiant Decision Engine module of the solution, can deliver real-time credit risk decisioning and “next best action “recommendations to customer contact agents based on ratings models that can be monitored, adapted and re-deployed in-house without creating an IT bottleneck.


“Banks and lenders are facing the challenge of becoming Basel II compliant, and with Chordiant Decision Management they can realise the considerable associated business benefits of increased speed in their analysis of customer credit risk,” says Don Morrison, president of Chordiant.


Chordiant Decision Management may be integrated seamlessly with Chordiant Marketing, Chordiant Contact Center and Retail Channel solutions, providing full control of the entire customer interaction process. Interactions with customers require decisions to be made both beforehand and in real-time. Customer data is passed to the Chordiant Decision Management package which returns the instructions on how to interact; whether via the branch system, the telemarketing support system or the website.