Finance Me* is one of Israel’s leading lending companies, with more than $2 billion in direct loans. The company is able to offer borrowers a quick response and lenders peace of mind. What makes Finance Me unique is its ability to perform a rapid and reliable assessment of each loan candidate, based on just a small number of questions.
The company has several different lines of credit, including providing loans for cars, home repair and debt repayment.
But direct loans can involve a higher level of risk of default than those administered through a bank. And, predicting which customers are most likely to default on their loans was costing Finance Me a lot of time and money for a model that was not agile enough.
“The statistician or data scientist has to put in a lot of frontend work before he or she can even build a predictive model,” explained the company’s director of the economics department. “Then, once the model is built and run, if the results aren’t accurate enough, the statistician has to refine the model. It is a constant back and forth.”
Today, businesses have access to more data than ever before. It is projected that by 2020, 40 zettabytes of data will be created, replicated and consumed in one year. As such, companies are increasingly challenged to process and analyze more data faster.
DMWay Analytics, which offers a machine learning predictive analytics solution that automates the model building process, answers this need for Finance Me.
With DMWay Analytics, Finance Me inputs its data into the machine and in a few minutes, it gets the best possible model – without any intervention from a statistician or data scientist. DMWay could train the Finance Me team to use its solution in just a matter of hours.
“We get a specific answer to a specific question,” said the CEO, who noted that DMWay reduces the time it takes to build a predictive model by more than 50 percent. The resulting model is also more accurate than any model it had before.
Finance Me predominantly uses DMWay for risk management. However, staff said the model is flexible enough that it can also be applied in many other areas. For example, Finance Me has created a predictive model that helps determine the conversion rate for loans based on past responses. With this tool, the CEO can direct his loan team to focus those customers with a predicted positive response first.
“DMWay is an on-demand tool that makes predictive analytics accessible for business users,” says Gil Nizri, Founder and CEO of DMWay Analytics. “It also gives subject matter experts access to machine learning in just three clicks, helping them achieve their goals.”
*Company name has been changed