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DEFINITION

Business Rules Engine (BRE)

A Business Rules Engine is a software system that automates the execution of business rules. Business rules are logical statements that dictate how different operations should be conducted. A BRE’s main goal is to cut down the need for manual work and make decisions based on business rules, therefore streamlining processes and making them more predictable and efficient.

In the context of banking, a Business Rules Engine can be used to consistently enforce policies, procedures, and compliance requirements across different systems.

Synonyms

Rule-based automation

Acronyms

BRE

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Synonyms

Rule-based automation

Acronyms

BRE

Examples

A bank implements a Business Rules Engine to automate its credit card application process. When a potential customer submits their information, the BRE will evaluate the data against a set of predefined rules, such as credit score thresholds, income requirements, and past financial behavior. Based on those predefined rules, the BRE will then make a decision to approve, deny, or flag the application for further review. The entire process is performed instantly, leading to a much better user experience and since the rules are applied to all cases, the credit application process is more consistent than if done manually.

FAQ

Provided with robust rules, a Business Rules Engine can handle complex tasks such as risk calculations. This would make processes such as user onboarding or account reviews a lot faster and more consistent than if done manually. Furthermore, rules can be easily updated, making BREs adaptable and future-proof.

A BRE works by separating business logic from application code. Namely, the rules are stored in centralized repositories and are used by algorithms to contrast and compare input data. This makes BREs very adaptable as the rules can be easily changed.

Yes, a BRE can be integrated with other banking systems, such as Customer Relationship Management (CRM) or Client Lifecycle Management (CLM) systems, core banking systems, Business Process Management tools, and so on.

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