Configuring the Business Formulas

The Business Formulas processor handles different inputs from your digital journey in order to generate desired outputs. By inserting arguments and using them in steps, the system creates complex calculations to be triggered in a flow. The order of the formula execution for the scoring done by the marketplace:

• BNPL_KO
• BNPL_Scoring
• BNPL_Limit
• BNPL_RK_AvailableProducts
• BNPL_RK_RiskLevel

The order of the formula execution for the scoring done by the bank is:

• BNPL_RK_AvailableProducts
• BNPL_KO_Risk
• BNPL_Scoring_Risk
• BNPL_MaxDTI_Risk
• BNPL_FinancialCalculation.

BNPL_KO

This formula calculates the knock-out criteria for the customer.

Formula steps:

result = DataSet("BNPL_KO_BnplWithDpdPast12Months", ("bnplWithDpdPast12Months", bnplWithDpdPast12Months)) == 1;

result = DataSet("BNPL_KO_DpdForBnplActiveProducts", ("dpdForBnplActiveProducts", dpdForBnplActiveProducts)) == 1;

result = DataSet("BNPL_KO_OrdersReturnedPercentage", ("ordersReturnedPercentage", ordersReturnedPercentage)) == 1;

result = DataSet("BNPL_KO_BnplRefusedPaymentsNoLast30Days", ("bnplRefusedPaymentsNoLast30Days", bnplRefusedPaymentsNoLast30Days)) == 1;

result = DataSet("BNPL_KO_HasModifiedCredentialsPast24Hours", ("hasModifiedCredentialsPast24Hours", hasModifiedCredentialsPast24Hours)) == 1;

var criterias = KO_bnplWithDpdPast12Months && KO_dpdForBnplActiveProducts && KO_ordersReturnedPercentage && KO_bnplRefusedPaymentsNoLast30Days && KO_hasModifiedCredentialsPast24Hours;
result = !criterias;

Data Set BNPL_KO_BnplWithDpdPast12Months

Data Set BNPL_KO_DpdForBnplActiveProducts

Data set BNPL_KO_ordersReturnedPercentage

Data set BNPL_KO_bnplRefusedPaymentsNoLast30Days

Data set BNPL_KO_hasModifiedCredentialsPast24Hours

BNPL_Scoring

After the customer continued to the check out page, the system decided if the customer is eligible for the limit. The data is hard-coded, but it can be fetched via API. For eligibility rules, the customer fails if:

• Buy Now, Pay Later with DPD >15 days in the past 12 months
• DPD more then 0 for Buy Now, Pay Later active products
• orders returned in the past 30 days >50%
• payments for Buy Now, Pay Later initiated at checkout and refused >5 in the past  30 days
• customer has modified the credentials in the past 24 hours.

Formula steps:

result = DataSet("BNPL_Scoring_CustomerLoyalty", ("CustomerLoyalty", customerLoyalty));

result = DataSet("BNPL_Scoring_AverageCheckoutTIcketSize", ("AverageCheckoutTicketSize", averageCheckoutTicketSize));

result = DataSet("BNPL_Scoring_MostCommonPaymentInstrument", ("MostCommonPayment", paymentInstrument));

result = DataSet("BNPL_Scoring_MaxDPD", ("maxDPD", maxDPD));

result = DataSet("BNPL_Scoring_AdvancePayments", ("AdvancePayments", payedInAdvance));

result = DataSet("BNPL_Scoring_UsageRate", ("BNPLUsageRate", BNPLUsageRate));

result = DataSet("BNPL_Scoring_ReturnedProductsPercent", ("returnedProductsPercent", returnedProductsPercent));

result = DataSet("BNPL_Scoring_UniqueCardsUsed", ("UniqueCardsUsed", uniqueCardsNo));

result = DataSet("BNPL_Scoring_CustomerAge", ("CustomerAge", customerAge));

result = SCORING_customerLoyalty + SCORING_averageCheckoutTicketSIze + SCORING_mostCommonInstrument +   SCORING_maxDPD + SCORING_advancePay + SCORING_usageRate + SCORING_returnedProductsPercent 
+ SCORING_uniqueCardsUsed + SCORING_CustomerAge;

Data set BNPL_Scoring_CustomerLoyalty

The hard-coded values from the following data sets are placed in FTOS_EC_ShoppingCartLoader.

It is measured in years.

Data set BNPL_Scoring_AverageCheckoutTIcketSize

It is measured in euros.

Data set BNPL_Scoring_MostCommonPaymentInstrument

Data set BNPL_SCORING_maxDPD

Data Set BNPL_Scoring_AdvancePayments

Data Set BNPL_Scoring_UsageRate

Data set BNPL_SCORING_returnedProductsPercent

Data set BNPL_SCORING_uniqueCardsUsed

Data set BNPL_SCORING_CustomerAge

BNPL_Limit

It calculates the limit of the customer. If the user score is over 100, the system assigns a limit to that user and progresses to the next calculation Product availability rules. If the user score is below 100, the system does not show any Buy Now, Pay Later products in the Payment screen. If the total check out value is over or equal to the limit, then the system does not trigger the risk calculations and the customer cannot pay with Buy Now, Pay Later.

Formula steps:

result = DataSet("BNPL_Limit", ("UserScore", userScore), ("currencyCode", currencyCode));

The currencyCode is hard-coded to EUR.

Data set BNPL_Limit

BNPL_RK_AvailableProducts

This formula calculates the available products.

Formula steps:

var available = DataSet("BNPL_Risk_AvailableProducts", ("Score", score), ("ProductCode", productCodes[i]), ("CountryCode", countryCode));
if (available == 1) {
    result[i] = productCodes[i];
}
else result[i] = null;

Data set BNPL_Risk_AvailableProducts has two data set values depending on the country Germany or France.

BNPL_Risk_AvailableProducts - DE

BNPL_Risk_AvailableProducts - FR

BNPL_RK_RiskLevel

After the customer selected the product type, the system calculates the risk level based on the total cart value and the product used. Based on the risk level, the system can decide to ask for additional information from the customer so that they can access the Buy Now, Pay Later product.

Formula steps:

result = DataSet("BNPL_RK_RiskLevel", ("amount", amount), ("productCode", productCode));

Data set BNPL_RK_RiskLevel

BNPL_FinancialCalculation

This formula calculates whether the loan is approved or not.

Formula steps:

result = expense / income;

result = maxDTI - DTI;

if (availableDTI > 0) {
    result = (decimal)(availableDTI * income);
}
else result = (decimal)(0);

if (availableDTI > 0 && maxInstallment >= monthlyInstallment)
    result = "Approved";
else result = "Rejected";

BNPL_KO_Risk

This formula determines the risk level of a customer based on age and employment status.

Formula steps:

result = DataSet("BNPL_KO_Risk_Age", ("age", age)) == 1;

result = DataSet("BNPL_KO_Risk_EmploymentStatus", ("EmploymentStatus", employmentStatus)) == 1;

result = KO_Risk_Age || KO_Risk_EmploymentStatus;

Data set BNPL_KO_Risk_Age

Data set BNPL_KO_Risk_EmploymentStatus

BNPL_MaxDTI_Risk

This formula determines the value for the risk category based on the user score.

Formula steps:

result = DataSet("BNPL_Scoring_Risk_Category", ("UserScore", userScore));

result = DataSet("BNPL_Scoring_Risk_MaxDTI", ("RiskCategory", MAXDTI_riskCategory));

Data set BNPL_Scoring_Risk_Category

Data set BNPL_Scoring_Risk_MaxDTI

BNPL_Scoring_Risk

This formula determines the scoring of a customer based on the age, marital status, employment status, time spent at current employer, DPD, active number of loans, education and user score.

Formula steps:

result = DataSet("BNPL_Scoring_Risk_Age", ("Age", age));

result = DataSet("BNPL_Scoring_Risk_MaritalStatus", ("MaritalStatus", maritalStatus));

result = DataSet("BNPL_Scoring_Risk_EmploymentStatus", ("EmploymentStatus", employmentStatus));

result = DataSet("BNPL_Scoring_Risk_EmploymentStatus", ("EmploymentStatus", employmentStatus));

result = DataSet("BNPL_Scoring_Risk_DPD", ("DPD", DPD));

result = DataSet("BNPL_Scoring_Risk_ActiveLoansNo", ("ActiveLoansNo", activeLoansNo));

result = DataSet("BNPL_Scoring_Risk_Education", ("Education", education));

result = SCORING_age + SCORING_maritalStatus + SCORING_employmentStatus + 
SCORING_timeAtCurrEmployer + SCORING_DPD + SCORING_activeLoansNo + SCORING_education;

Data set BNPL_Scoring_Risk_Age

Data set BNPL_Scoring_Risk_MaritalStatus

Data set BNPL_Scoring_Risk_EmploymentStatus

Data set BNPL_Scoring_Risk_ActiveLoansNo

Data set BNPL_Scoring_Risk_TimeSpentAtCurrentEmployer

Data set BNPL_Scoring_Risk_DPD

Data set BNPL_Scoring_Risk_Education