The Credit Scoring Module is following the industry trend of applying Credit Scoring analysis and has a completely adaptable approach for defining indicators and parameters for borrower’s creditworthiness assessment, based on client business needs.
The module is based on benchmarks of MFC (Microfinance Center), Mix Market and CGAP standards and represents an adaptable toll for managing scoring variables.
Score Cards can be defined from user side, based on client’s specific scoring indicators and integrated into process workflow by linking them on product level. Integrated DDC object on loan application level provides automatic calculation of card creditworthiness, based on predefined ranking scheme.
Score Cards integrate with the parameters from the Application Processing Module, in order to mitigate any possibility for double entries. There are two types of parameters to be entered, from the DDC Object implemented on the Scoring Card or from Personal Data Registry, which is data that is already in the system, as a method to avoid double entry and centralize data control. The module supports N levels of decision trees (for e.g. un-weighted, Judgmental – weighted, data weighted) and formulas (for e.g. judgmental – weighted, data weighted) , automatically generating all possible combinations of answers, by creating the tree path, overtaking the weight factors and entering points for all combinations.
Calculation mechanism (e.g. variable weight, decision tree-mechanism etc.) are integrated within the Application Processing and Approval Process, for automatic processing of Scoring Cards and giving clear results affecting the decision process.
The score is added on every separate combination of answers and later based on this predefined ranging scheme, is used in automatic calculation of borrower’s score. Additionally, parameters can be linked from Spreadsheet files directly into the Credit Score Cards used for performing statistical analyses.
Combined Statistical & Subjective Scoring FactorsSpeed up the decision process and loan approval within several minutes rather than weeks by interactively using statistical tools combined with flexibly defined parameters to create good decision criteria for evaluation of the creditworthiness of borrowers.
Dynamic Scoring Approach Take advantage of the dynamic definition of the decision-making process and base your decisions on borrower’s historic behavior and the statistical models for risk evaluation in order to gain maximum value of every candidate applying for loan.