Scoring Models

The Scoring models are now an indispensable tool in the allocation of credit to new customers and the risk classification of existing customers.

The Scoring models are now an indispensable tool in the allocation of credit to new customers and the risk classification of existing customers. The goal of a scoring model is being able to take a decision for each proposal/ client, in an automatic, objective and reliable way. Using statistical models it is possible to predict the customer's future behavior, based on the information available in the computer system of the entity through history left by customers.

 

The main benefits of a scoring model are:

1. Reduction of bad debts;

2. The neutral risk assessment based on an objective analysis of the data;

3. More reliable and faster decisions;

4. Decision-making consistent throughout the network of branches;

5. Parameter management Control;

6. Automatization capability;

7. Better customer service;

8. Improved Profitability;

9. Better decisions;

10. More responsible Loans.