Configuring the Business Formulas
Business Formulas processes 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. For this loan solution, there are several formulas used for the Simulation, Product Selection, Application Result, Credit Card, Some Lifestyle Questions, and more.
Business Formulas
This is where you build business formulas based on your business needs. These are the formula names used in this solution:
| Name | Business Status |
|---|---|
| MaxCreditCardLimit | Active |
| MaxAmountOverMaxTenor | Active |
| RetailLoanFinancialAnalysis | Active |
| Scoring | Active |
| PMTCalculation | Active |
Formula Steps
Steps allow you to process a formula in successive stages and to use the output from a step as an input argument in subsequent steps. For each of the formulas below one or more steps were created.
MaxCreditCardLimit
This formula calculates the maximum limit a customer can take on for the selection of a Credit Card.
| Step Name | Master Type | Sub-Type | Calculation Type |
|---|---|---|---|
| availableDTI | Simple Type | Decimal | Normal |
| maxCreditCardLimit | Simple Type | Decimal | Normal |
MaxAmountOverMaxTenorThis formula calculates the maximum value of the installment and uses it to calculate the loan amount.
| Step Name | Master Type | Sub-Type | Calculation Type |
|---|---|---|---|
| maxInstallment | Simple Type | Decimal | Normal |
| loanAmount | Simple Type | Decimal | Normal |
RetailLoanFinancialAnalysisThis formula analyzes the financial situation of the customer and defines the decisions to approve or reject the application.
| Step Name | Master Type | Sub-Type | Calculation Type |
|---|---|---|---|
| ClientCategory | Simple Type | Text | Normal |
| MaxDTI | Simple Type | Decimal | Normal |
| DTI | Simple Type | Decimal | Normal |
| Decision | Simple Type | Text | Normal |
ScoringThis formula calculates the scoring of a customer based on the following information: Age; Marital Status; Employment Status; the number of Active Loans inserted by the customer in Some Lifestyle Questions. It defines a decision with the value Approved/Derogation/ Rejected taking into account the scoring and the FICO score.
The FICO values are set as follows x>=700 is Approved; 520<=x<700 is Derogation; x<520 is Rejected.
FICO score is set at 720, hence all loans are approved.
| Step Name | Master Type | Sub-Type | Calculation Type |
|---|---|---|---|
| Name | Master Type | SubType | CalculationType |
| SCORE_Age | Simple Type | Whole Number | Normal |
| SCORE_MaritalStatus | Simple Type | Whole Number | Normal |
| SCORE_EmploymentStatus | Simple Type | Whole Number | Normal |
| SCORE_WorstDeliquency | Simple Type | Whole Number | Normal |
| SCORE_ActiveLoansNo | Simple Type | Whole Number | Normal |
| ApplicationScore | Simple Type | Whole Number | Normal |
| FICOScoreDecision | Simple Type | Text | Normal |
| ApplicationScoreDecision | Simple Type | Text | Normal |
| Decision | Simple Type | Text | Normal |
PMTCalculationThis formula calculates the PMT, calculating the monthly payment: principal and interest required to settle a loan or an investment with a fixed interest rate over a time period.
| Step Name | Master Type | SubType | CalculationType |
|---|---|---|---|
| PMTCalculation | Simple Type | Decimal | Normal |
Formula Input
Formula arguments are the entity's attributes which hold a single value (be it simple or collection) which will be used as input for the formulas and their steps presented above.
Arguments
CrossSellingCrediCardsArguments used:
| Argument | Master Type | Formula Argument Sub-Type |
|---|---|---|
| countryCode | Simple Type | Text |
| currentInstallment | Simple Type | Decimal |
| maxInstallment | Simple Type | Decimal |
MaxAmountOverMaxTenorArguments used:
| Argument | Master Type | Formula Argument Sub-Type |
|---|---|---|
| income | Simple Type | Decimal |
| interestRate | Simple Type | Decimal |
| maxDTI | Simple Type | Decimal |
| monthlyPaymentsForCreditLimits | Simple Type | Decimal |
| otherInstallments | Simple Type | Decimal |
| tenor | Simple Type | Whole Number |
RetailLoanFinancialAnalysisArguments used:
| Argument | Master Type | Formula Argument Sub-Type |
|---|---|---|
| applicationScore | Simple Type | Whole Number |
| creditCardLimits | Simple Type | Decimal |
| currency | Simple Type | Text |
| income | Simple Type | Decimal |
| interestType | Simple Type | Text |
| loansMonthlyPayment | Simple Type | Decimal |
| scoringDecision | Simple Type | Text |
PMT InputArguments used for PMT calculation:
| Arguments | Master Type | Formula Argument Sub-Type |
|---|---|---|
| interestRate | Simple Type | Decimal |
| loanAmount | Simple Type | Decimal |
| numberOfMonthsOfPayments | Simple Type | Whole Number |
ScoringArguments used:
| Arguments | Master Type | Formula Argument Sub-Type |
|---|---|---|
| activeLoansNo | Simple Type | Whole Number |
| age | Simple Type | Whole Number |
| employmentStatus | Simple Type | Whole Number |
| FICOScore | Simple Type | Whole Number |
| maritalStatus | Simple Type | Text |
| worstDeliquency | Simple Type | Whole Number |
Formula Parameter Mapping
Here the results are mapped on to the entity attributes.
| Name | Master Entity | Data Mapping Type | Operation Name |
|---|---|---|---|
| PMTCalculation_FixedInterestFormula_Basic_1622711527525_formula | Banking Product | PMTCalculation | |
| RetailLoanFinancialAnalysis_formula_FTOS_BARET_Loan | FTOS_BARET_Loan | Formula | RetailLoanFinancialAnalysis |
| Scoring_formula_FTOS_BNKAP_RetailApplicantData | FTOS_BNKAP_RetailApplicantData | Formula | Scoring |
RetailLoanFinancialAnalysis_formula_FTOS_BARET_Loan| Input | Attribute | Output | Attribute |
|---|---|---|---|
| FTOS_BARET_Loan - Input | FTOS_BARET_Loan - Output | ||
| applicationScore | score from Pricing | ClientCategory | No mapping needed |
| creditCardLimits | totalCreditCardsLimits from financialDataId | MaxDTI | MaxDTI from financialDataId |
| currency | name from loanCurrency | DTI | DTI from financialDataId |
| income | incomeDeclared from financialDataId | Decision | No mapping needed |
| interestType | interestTypeId from Pricing | ||
| loansMonthlyPayment | totalOtherLoansMonthlyPayments from financialDataId | ||
| scoringDecision | No mapping needed |
Scoring_formula_FTOS_BNKAP_RetailApplicantData| Input | Attribute | Output | Attribute |
|---|---|---|---|
| FTOS_BNKAP_RetailApplicantData - Input | FTOS_BNKAP_RetailApplicantData - Output | ||
| activeLoansNo | activeLoansNo from FinancialData | SCORE_Age | No mapping needed |
| age | Age from FTOS_BNKAP_RetailApplicantData | SCORE_MaritalStatus | No mapping needed |
| employmentStatus | Occupation from FTOS_BNKAP_RetailApplicantData | SCORE_EmploymentStatus | No mapping needed |
| FICOScore | ficoScore from FinancialData | SCORE_WorstDeliquency | No mapping needed |
| maritalStatus | Marital status from FTOS_BNKAP_RetailApplicantData | SCORE_ActiveLoansNo | No mapping needed |
| worstDeliquency | worstDeliquency from FinancialData | ApplicationScore | No mapping needed |
| Decision | No mapping needed |
Data Sets
Data sets are mappings that associate values for a set of discriminants to values. This is where the limits are set by each bank. To the data found in these sets the system compares the results from a customer to see if they fit in the matrix.
| Name | Business Status | Used in Formula |
|---|---|---|
| MaxDTI | Active | RetailLoanFinancialAnalysis |
| CrossSellingCardCoefficient | Active | MaxCreditCardLimit |
| CreditCardAdjCoeff | Active | RetailLoanFinancialAnalysis |
| FINCALC_ClientCategory | Active | RetailLoanFinancialAnalysis |
| ApplicationScoreDecision | Active | RetailLoanFinancialAnalysis |
| SCORING_MaritalStatus | Active | Scoring |
| SCORING_WorstDeliquency | Active | Scoring |
| FICOScoreDecision | Active | Scoring |
| SCORING_ActiveLoansNo | Active | Scoring |
| SCORING_EmploymentStatus | Active | Scoring |
| SCORING_Age | Active | Scoring |
For more details, see Business Formulas.