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OBIEE: An effective tool for quality control in Credit Bureau Reporting by Auto-Finance Companies

Auto-finance Organizations in US have to report the credit data of their customers every month to Credit Reporting Agencies (CRAs) i.e. Experian, Equifax, Transunion and Innovis to comply with FCRA (Federal Credit Reporting Act) of US law. For this they have automated software programs in place which extract the account and consumer data from their source systems and transform/ load the data as per defined business logic into data warehousing tables before it is finally sent to CRAs in the format of Metro 2 files. This process is called 'Credit Bureau Reporting'.

But to ensure the integrity and accuracy of reported data, it's commonly adopted and recommended practice to do pre and post credit data transmission checks. Given below are brief details of such checks: -

 

Pre-Transmission Checks: - Following are general Pre-transmission checks done in the customer credit data. Corrective actions are to be taken in case of any issue observed during these checks. These can involve stopping the reporting of those accounts to CRAs for the current reporting month if needed, analyzing the root- cause of the discrepancy and fixing those issues so that the account can be properly reported either in the same reporting month or next reporting month onwards to CRAs: -

 

  1. Exclusion of manually identified or selected accounts using some predefined criteria

  2. Various kind of data quality checks; some examples are given below: -

    1. To find the accounts where both SSN (Social Security Number) and DOB (Date of Birth) are null for one or more consumers

    2. Invalid ECOA (Equal Credit Opportunity Act) Code value check for various consumers

    3. Invalid Payment Terms Frequency value check

  3. It can consist of even raw data validation which is generally sourced from Legacy systems of the client and processed as per the defined logic to prepare the Account/ consumer credit data for credit Bureau Reporting. Raw data is useful for validating the values of various parameters in Metro 2 file against the values in source systems.

  4. Picking random data- samples of various type of accounts e.g. current/ delinquent/ charged off to be reported and checking their data for correctness

 

Post-Transmission Checks: - After transmitting the customer credit data to CRAs,

When reject reports / feedback files are received from them, those need to be extracted and analyzed. Some examples of issues in the reject reports include Invalid Name/ Address /date of birth or any anomaly in the financial data of reported accounts in the Metro 2 file.

Using the Power of OBIEE: -For Pre and Post Transmission checks and preparing various Business Intelligence reports useful for Auto-finance business, various reporting tools are available in the market such as SAP BO, Tableau, Qlikview, IBM Cognos, OBIEE (also known as Oracle BI) etc. Among those one of the widely used effective tools is OBIEE (Oracle Business Intelligence Enterprise Edition). A reputed BI application from Oracle in the market, it is a portfolio of technology and applications which provides numerous important features for enterprise financial performance management such as integrated array of query, analysis, reporting, alerting, mobile analytics, data integration and management and data warehousing.

 

The diagram above gives an idea of how OBIEE can be used in quality control in credit bureau reporting process.

To enable various Pre Transmission data quality checks and raw data validation, data from all the required sources can be brought into OBIEE data warehouse and processed for reporting purposes.  Business required dashboards and reports can be built in OBIEE which would show no. of accounts/ consumers satisfying a particular data quality criterion or account/ consumer wise raw- data or details of randomly taken specific type of accounts. Based on the issues observed in these reports, the BI user can do the root-cause analysis and take corrective actions regarding reporting of the related accounts.

Similarly, to enable various Post Transmission data quality checks, using OBIEE the rejection details from CRAs can be processed to create required dashboards and reports for analysis in order to improve the credit bureau reporting process going forward.

 

Apart from these capabilities, following are the various reasons which make OBIEE a smart choice among the available reporting tools for quality control in the process of credit bureau reporting and auto-finance business: -

 

  1. Provides full range to BI capabilities that enables customer to collect up-to-date data from the organization

  2. Proactive intelligence and alerts

  3. Action framework which initiates business process in the context of insights

  4. Hierarchy- drilldown on data (i.e. higher to lower level data) is a very useful feature e.g. there is some year wise no. of repossessions shown in a report. If the user wants to see quarter / month wise details too within the same report, user can drilldown on year/ quarter value respectively.

  5. OBIEE has a unique inbuilt capability of BI Publisher. This is used to publish printable versions of various reports which can vary as per the provided templates as well as recipients.

These all capabilities enable the auto-finance companies to prepare various kind of powerful actionable credit reports of their customers and business to take better decisions, informed actions and implement more efficient business processes. Infosys has a strong expertise in the credit bureau reporting solutions as well as OBIEE space.

 

References:

http://www.oracle.com/technetwork/middleware/bi/overview/index.html

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