Why Simple Rule Engine?
Rationale behind the need for a simple rule engine
Decision-making has always been at the heart of any business. In certain industries (such as Lending), some of the decisions made are so dynamic & in flux that programming these decisions by hand is counter-productive.
Take the example of the decision to give someone a loan. It primarily involves ascertaining two fundamental factors:
Ability to repay the loan.
Intent to repay the loan.
When you start assessing a borrower based on the above, you typically get all facts required to make a decision (such as Bureau score, bank statements, etc.) and you will pass these facts through a decision matrix to arrive at
A composite score on a scale that gives an indication of whether the borrower will repay the loan (intent)
A recommendation of how much loan should be given to the borrower. (ability)
The aforementioned decisions involve the evaluation of multiple parameters. You cannot write a program to solve such complex scoring or decision problems:
The evaluations and/or scores will always change over a period of time to adjust to business needs
The rules will also vary based on the nature of the business product.
In the next section, let us look at some examples from Lending Industry which calls for a Rule Engine solution.
References
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