Current Situation
Governments have a good handle on procurement and payments, but they still struggle with fraud. Governments provide loans that are crucial to the prosperity of homeowners, businesses, farmers, students, rural communities, and other groups. Agencies struggle to collect the necessary data and put in place the information systems, analytical models, and technical processes for robust risk management to prevent defaults and ensure that these loans are repaid.
Goals and Objectives
Reduce the administrative burden and minimize costs of applying for loans and maximize the use of public funds for their intended purposes. Quickly identify risky loans to minimize default and fraud. Agencies seek fraud monitoring tools and compliance management tools. They seek to assure that they receive what they have paid for, and that they do not make any improper payment.
Technology Deployed
Cloud-based information management systems that contain data for loan recipients and lenders, Big Data to identify credit risk, on-demand reporting tools (scorecards/dashboard) to provide visualization of loan status and risk scores, risk assessment models that incorporate unstructured data (text-based reports and public information), compliance management tools, workflow management, change management applications
Use Case Summary
Expanding the capacity to identify and analyze programmatic risks through automated, data-driven risk assessment tools enables government to be good stewards of public funds. By using predictive analytics and by setting compliance management rules, agencies can improve their fraud detection success rate – in some cases to over 90%.