APPRO Launches New Version of Consumer LendingSystems.

NEW YORK--(BUSINESS WIRE)--Sept. 11, 1997--

System Applies bankruptcy and delinquency modeling technology to

underwrite and price loan products

APPRO Systems, Inc. announced today at the Financial Technology Expo, the launch of a new version of the

The new version of the company's core lending system incorporates a financial institution's credit policy, scorecard, bankruptcy screening, delinquency screening, collateral value (on secured loans) and applicant's credit characteristics to determine the best loan product fit for the applicant. According to APPRO officials, lenders specializing in in-direct auto lending could move toward a near zero decline rate with this system.

APPRO's consumer lending systems are used by high volume lenders throughout North America to evaluate credit risk and process consumer loans. Some of APPRO's customers include BMAC, Hibernia, PNC Bank, San Francisco Federal Employees Credit Union and The Toronto-Dominion Bank.

The new system was developed to address major changes in the lending environment and to provide more complex decisioning capabilities.

"Lenders are facing a myriad of challenges today that didn't exist just two years ago," said Craig Uffman, president of APPRO Systems. "They are looking at a shrinking population in key demographics areas, accelerating pressure for higher earnings, soaring bankruptcy rates and intense competition. The legacy this new system will leave is that it is the first lending system with automated down-selling capabilities to match the right product at the right price for the applicant."

APPRO's new systems can apply the institution's complete credit policy for each applicant or multi-applicants on multiple products. By looking at hundreds of variables within seconds, the system can evaluate the strengths of the individuals and match them to the appropriate product. The system can also determine if one applicant has a stronger credit profile than the co-applicant.

The new system includes more than 200 significant enhancements and enables financial institutions to maximize workflow while minimizing risk. New loan queuing options give APPRO customers flexibility in routing applications.

In-direct Lenders Move to Zero Declines with New System

According to Uffman, consumers who don't qualify for a particular loan product are constantly re-evaluated for products with different credit guidelines. This process is called "downselling" because the applicant is automatically assessed down a hierarchy of products the institution offers until there is a match. If the applicant does not qualify for any product, the customer can be automatically routed to a "conduit" business partner which specializes in sub-prime loans. In general, lenders that can increase automated lending decisions can generally respond to dealers quicker and secure a higher percentage of contracts.

APPRO's system can be used to connect to other front end loan application systems such as IBM's Auto Loan Exchange, and ADP/CMSI's Credit Connection.

"Risk-based pricing is the key for maximizing profits today," said Uffman. "Downselling will enable lenders to look beyond the scorecard mentality of pass or fail and close loans at a price relevant to the risk."

More System Enhancements

Customers also have more control over the handling of duplicate and potentially fraudulent applications. There are new controls for branch-sponsored applications, applications requiring special handling and applications received via solicitations.

The new system includes:

-- More control in implementing risk management and work flow strategies

-- Increased ability to process much higher volumes

-- Greater connectivity to dealers, branches, mail processors, data

warehouse, and other external databases

-- An easy, reliable transition from the current version.

"Those who take advantage of the new system should experience much greater loan officer and loan processor capacity, significantly greater control over credit policy, and be able to catalyze volume growth through simplified connectivity to their marketing channels," Uffman added.

The software automatically computes the correct buy rate, contract rate, or origination fee based upon credit quality measurements, collateral parameters, financial measurements, the product itself, the delivery channel and the lender's cost of funds. "Automatic, consistent risk-based pricing directly provides control and enhances underwriting capacity," Uffman said.

As another enhancement, the APPRO Expert System provides more pre-bureau declines as well as a much more powerful "indexed" decision matrices. New rules help customers consider aggregate relationships with customers in approving credit and assigning credit limits.

About APPRO

APPRO Systems, Inc., founded in 1979, is privately held and managed. The company's family of credit assessment products is installed in more than 90 financial institutions nationwide. Along with the consumer lending systems, APPRO's products include the 20/20 Small Business Lending System, a complete assessment package for commercial lending that evaluates multiple applicants and products.

APPRO Systems is headquartered at 9489 Interline Avenue, Baton Rouge, LA 70809. For more information contact Craig Uffman at (504) 922-4730.

CONTACT: APPRO Systems

Craig Uffman, 504/922-4730

craig_uffman@approsystems.com

or

For APPRO Systems

Scott Mills, 404/264-7201

scott@williammills.com