Credit scoring is increasingly being used by banks and other financial institutions to measure risk factors when financing small and medium enterprises (SMEs) and individuals. It is applied to approve loans and uses scores to assess the potential credit risk of borrowers.
Thanks to technological advances in credit reporting systems and modern credit scoring software, financial institutions can extend their credit portfolio to SMEs and individuals by using this method.
Our experienced team will help you evaluate the creditworthiness of your potential customers in an automated, consistent, and objective manner by implementing or integrating solutions from the leading credit scoring software vendors.
The key to implementing credit scoring model software is the automation of loan origination workflows that occur between a loan supplier and individual customers or SMEs.
Credit scoring system integration helps banks to undertake a transparent analysis of each specific relationship. Scoring software solutions can consider the number of issued invoices and the efforts for payment collection.
When calculating customers’ credit score, the credit scoring system also includes external information, such as credit insurance information, exceeded credit limits, credit ratings, and black and white lists. We can implement the import of critical information from other systems or sources into the database, such as risk codes, locations, etc. Another option that can be enabled is a forced stop of the automatic processing of a loan application for any reason. This allows you to complete further analysis in your credit or risk departments.
To sum up, the credit scoring software can combine both financial and non-financial data analysis to form an in-depth overview. This is needed to evaluate all individual customers and SMEs.
The first step in a scoring software project implementation is identifying the type of customers and products scoring for which the scoring model will be used.
There are three main types of scorecards:
The process of scorecard design, regardless of its type, can be grouped into these three phases:
This is further subdivided into the following phases:
Adopting a clear and consistent scoring policy enables risk managers to compare customer performance and credit history analysis without pattern exceptions. Most importantly, scoring grants the opportunity to draw credit scores for your customers individually. This data can be used to segment customers. You can place them in the right workflow and create the best actions for each customer, giving a personalized approach.
Our experts can provide your company with a perfect tool, enabling you to draw a complete picture of each customer. It will help your risk department better analyze risks, work more efficiently, prioritize, and reduce non-performing debts.
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ABLE covers the needs of bank loan software, cash loan software, installment loan software, personal loan software, small loan software, and more. Tier 1 and Tier 2 banks and microfinance institutions use our solutions to ensure a continuous and high-quality lending process.