Accelerating Fraud Detection and Underwriting with DecisionRules

Read the PDF: Visual Summary of PayJustNow’s Fraud Detection and Underwriting Journey

About PayJustNow

Founded in 2019, PayJustNow is a South African “Buy Now, Pay Later” (BNPL) provider, enabling customers to split purchases into three equal, interest-free payments. With over a million users and growing quickly, PayJustNow has solidified itself as a leading choice for flexible payments in South Africa. The company offers a seamless experience both online and in-store, making affordability accessible to a vast customer base across the country.

As PayJustNow scaled, it became clear that their traditional rule-based systems for fraud detection and underwriting were no longer sufficient. Previously, fraud detection and underwriting logic was hard-coded, meaning even minor changes to rules required significant time and resources from the development team. This setup presented several critical issues:

Slow Reaction to Fraud Trends: Implementing new fraud rules or updating existing ones took 2–3 days due to the need for engineering support and development cycles. During this delay, emerging fraud patterns could go unaddressed, resulting in substantial financial loss.
Inflexibility in Underwriting: The underwriting process needed to be responsive to changing market dynamics, but modifying credit eligibility rules was a lengthy process, leading to missed opportunities to optimize credit offers in real-time.
High Costs and Limited Scalability: Managing these processes required a dedicated team of three developers, leading to high operational costs and slow reaction times.

The Solution: DecisionRules

‍Fraud Decisioning: PayJustNow initially integrated DecisionRules to streamline their fraud detection processes. They were able to quickly adapt to emerging fraud trends by creating and adjusting rules dynamically without relying on a slow-moving engineering pipeline. This capability allowed the team to react more effectively, minimizing fraud risk.Underwriting: Beyond fraud detection, PayJustNow also utilized DecisionRules for their underwriting processes. This includes making critical lending decisions when a customer applies for a loan.

Rapid Deployment and ROI

‍The DecisionRules rollout was fast and seamless. In just three months, it replaced the need for a team of three developers, delivering a quick ROI. By putting control over rules directly in the hands of non-tech teams, DecisionRules freed up engineering resources, saving PayJustNow millions each year.

How PayJustNow Uses DecisionRules

Fraud Detection: Real-Time Protection and Significant Savings

Fraud prevention is one of the highest priorities for PayJustNow. Prior to DecisionRules, fraud rule adjustments required up to three days due to the development and testing cycles needed to implement even minor changes. This delay created vulnerabilities, leaving PayJustNow exposed to emerging fraud trends that could cost the company millions.

With DecisionRules, the time to implement new fraud rules has decreased dramatically—from days to mere seconds. Here’s how it works:

Real-Time Fraud Trends: DecisionRules enables the fraud team to instantly react to new patterns.
Cost Savings: By being able to respond in real time, PayJustNow saves millions each month by stopping fraudulent transactions before they can result in losses.
Flexible Rule Management: Fraud rules are no longer static. DecisionRules allows PayJustNow to adjust rules on the fly, testing different configurations and ensuring optimal fraud protection without developer intervention.

Underwriting: A/B Testing and Champion-Challenger Strategies

PayJustNow’s underwriting process also saw a significant transformation. DecisionRules’ robust decisioning capabilities allowed the company to implement complex A/B testing and champion-challenger logic within their underwriting workflows.

Key improvements include:

A/B Testing: The underwriting team can now run A/B tests on different lending criteria. This agile approach has allowed PayJustNow to identify optimal strategies, refining their credit decisioning based on real-time data and feedback.
Champion-Challenger Logic: This capability not only improves credit decisions but also ensures the company remains competitive and responsive to changing market conditions.
Increased Agility: Changes to underwriting logic, which previously took days to implement, now happen almost instantly. This flexibility allows PayJustNow to adapt to market changes and optimize customer approvals in real time, leading to higher customer satisfaction and better risk management.

Results and Impact

3-Month ROI: Team of 3 Developers Reallocated to Strategic Projects

By transitioning to DecisionRules, PayJustNow achieved a rapid 3-month return on investment, eliminating the need for a dedicated team of three developers previously responsible for rule updates. With DecisionRules in place, these developers could refocus on other high-impact projects, increasing overall productivity and reducing operational costs.

From Days to Seconds: Unmatched Speed in Fraud Detection

The ability to deploy fraud rules within seconds—down from the previous 2-3 days—has resulted in substantial financial savings and reduced fraud-related losses by millions of dollars each month. DecisionRules’ real-time rule updates ensure PayJustNow remains protected against rapidly evolving fraud tactics.

Enhanced Underwriting Decisions with A/B Testing

Through DecisionRules’ A/B testing and champion-challenger capabilities, PayJustNow’s underwriting team gained unparalleled flexibility. They can test, analyze, and iterate on different credit strategies without delays, improving their credit approval accuracy and customer satisfaction.

Future Plans with DecisionRules

PayJustNow’s success with DecisionRules in fraud detection and underwriting has inspired plans to expand its use across other areas, including account management for dynamic credit limit adjustments and customer personalization. DecisionRules’ scalability and flexibility ensure that PayJustNow can continue to adapt and grow, capitalizing on new opportunities without increasing IT dependency.

Conclusion

DecisionRules has been a game-changer for PayJustNow, transforming their approach to fraud detection and underwriting. With faster rule deployment, significant cost savings, and increased agility, PayJustNow has not only protected its bottom line but also set a new standard for responsiveness in the financial services sector. DecisionRules achieved an impressive ROI in just three months, freeing up developers to focus on strategic initiatives and empowering business teams to manage rules independently.

For PayJustNow, DecisionRules isn’t just a rule engine; it’s a strategic asset that supports rapid growth, innovation, and enhanced customer experiences in South Africa’s dynamic BNPL market.