Overall Approval Rate

The overall approval rate is the percentage of cases or transactions that are accepted, either automatically or after manual review. In industries such as finance, insurance, and e-commerce, organizations use automated systems and human review to assess the risk, legitimacy, or suitability of transactions, applications, or requests. The overall approval rate shows the share of these items judged acceptable. It helps explain the organization's risk appetite, customer experience, and the effectiveness of its decision-making process.

Example

A credit card company uses automated systems and manual review to evaluate applications for new credit cards. Applicants who meet certain criteria are automatically approved, while others need further review by a human reviewer. The overall approval rate is the percentage of applications that are ultimately accepted, whether through automation or manual review. By tracking the overall approval rate, the credit card company can measure how well its screening process works, keep a balanced risk profile, and make sure it serves a broad range of customers while managing risk appropriately.