Ilog (Nasdaq: ILOG, Euronext: ILO, ISIN: FR0004042364) today announced Ilog Rule Studio Scorecard Modeler in response to increased demand for building empirical models into credit and other risk-based decisions.
Available as an add-on for ILOG JRules, a key offering in ILOG's business rule management system (BRMS) product line, the ILOG Rule Studio Scorecard Modeler enables ILOG customers to incorporate statistical scorecard models directly into decision services created and managed with JRules. Targeting financial institutions and a growing market for scorecard usage in other industries, the new ILOG Scorecard Modeler extends the capabilities of JRules by allowing users to directly create and manage scorecards, a commonly-used tool for predicting risk and assigning actionable metrics to customer behavior.
The ILOG Scorecard Modeler includes support for complex (nested) scorecards, allowing for more accurate prediction of behavior and thus enabling better risk assessment and management.
Precise and Effective Decisions Achieved by Integrating Rules and Predictive Models
Scorecards are used by companies for attributing a 'score' to a customer or transaction which indicates the statistically predicted probability of a certain outcome. Scorecards are already widely used in finance and retailing for credit decisions, and for fraud detection in insurance. Many other industries are increasingly interested in using scorecards in situations where the difficulty of integrating scoring into automated decisions has previously discouraged the use of predictive models. Instead, many institutions have used ad hoc data sampling or relied on subjective assessments to set decision policies. By providing an accessible and easy-to-use tool for creating and maintaining scorecards that can be directly integrated with related business rules into a coherent decision service, ILOG Rule Studio Scorecard Modeler bridges the gap between predictive models developed with business intelligence tools, and operational decisions managed by ILOG BRMS - making for better decisions that can be transparently managed, updated, and audited.
"As a long-time user of JRules, Equifax was pleased to work with ILOG to define capabilities for ILOG Rule Studio Scorecard Modeler," said Sandeep Gupta, vice president, Strategic Software Development, Equifax. "This new technology simplifies integration of complex scorecards into JRules-based decision services, enabling better and more transparent credit decisioning. The solution's increased flexibility also provides new options for applying credit scoring models across multiple and disparate data sources."
Support for Complex Scorecards Provide Comprehensive Risk Assessment
The Rule Studio Scorecard Modeler is one of the first BRMS products on the market to offer out-of-the-box support for complex scorecards. Prior to the availability of this feature, complex manual development of segmented scoring models was required to fully predict behavior and to form a complete assessment. For example, in a credit decision, separate scorecards may be needed to review an applicant, their spouse, or their type of employment or the history of similar transactions of applicants. The Rule Studio Scorecard Modeler complex scorecard feature can create scorecards that easily integrate the results of related scorecards into a final score as needed.
The ILOG Rule Studio Scorecard Modeler is available immediately.