Overall Approval Rate

The overall approval rate is the percentage of cases or transactions that are accepted, either automatically or after manual review, much like a welcoming host who opens the door to a diverse array of guests. In various industries such as finance, insurance, and e-commerce, organizations use a combination of automated systems and human intervention to assess the risk, legitimacy, or suitability of transactions, applications, or requests. The overall approval rate reflects the proportion of these items deemed acceptable, offering insights into the organization's risk appetite, customer satisfaction, and the effectiveness of its decision-making processes.

Example

A credit card company uses a combination of automated systems and manual review to evaluate applications for new credit cards. Applicants who meet certain criteria are automatically approved, while others may require further investigation by a human reviewer. The overall approval rate is the percentage of applications that are ultimately accepted, whether through the automated process or manual review. By monitoring the overall approval rate, the credit card company can gauge the effectiveness of its screening process, maintain a balanced risk profile, and ensure that it is providing its services to a wide range of customers while managing risk appropriately.