e-Newsletter

Equipment Leasing company installs custom scoring system on Score360®
Scoring Solutions has successfully developed and implemented a segmented system of custom scoring models to assist with commercial lease decisions in the office products, technology, and health care industries.  The new scorecards evaluate the overall company and each personal guarantor.  They provide significant lift in predictive power with 15 – 25% increases in KS values over the prior scorecards, using data from consumer credit bureaus as well as from commercial exchanges.  The new scorecards and decision rules were implemented using our Score360 system which allows for the fast implementation of new scores, the calculation of complex credit bureau attributes, and the application of decision rules to each applicant.

Regulatory Emphasis: Scorecard Monitoring and Validations
Regulators have been focusing on the development, implementation and use of scorecards.  They call this “model risk management” – managing the risk associated with scorecards.  Regulators now want to ensure that scoring systems are properly developed, monitored and validated.  This is an excellent initiative as we want to ensure that scorecards are functioning as planned.  For more information on the regulatory view of this topic, please refer to OCC 2011-12, “Supervisory Guidance on Model Risk Management”, dated April 4, 2011.

Scoring Solutions can support any creditor with the development, monitoring and validation of scorecards.  We can assist with monitoring and validating your scorecards – regardless of whether the scorecards were developed by Scoring Solutions or any other vendor.   Scoring Solutions is actively engaged in monitoring/validating many scoring systems.  We provide guidance on the effectiveness of the scoring system and make recommendations as to whether modifications should be made to improve the performance of the scoring models.

Hosted Collection Scoring Models
Scoring Solutions has developed hosted collection scoring systems for many companies to assist with early and mid-stage collection efforts.  We also develop recovery scores used by collection agencies and debt purchasers to assist with the prioritization of collection resources on the accounts with the greatest likelihood of recovery.  Each month the client will FTP information on each account to Scoring Solutions.  We receive this feed, request any other needed third party information, perform all scoring and decisioning functions, and return a decision strategy to our clients.  Turnaround time is very fast and the collection scores and strategies do an excellent job of identifying collectible dollars. We provide expert consulting to develop Champion and Challenger strategies.  Monitoring reports are produced each month to evaluate the effectiveness of the scoring models and the decision strategies, as well as to detect any changes that may be occurring in the scored data.  Scoring Solutions consultants provide expert feedback on the performance of these systems which have been developed for small, medium and large customers.  They are a great tool to become more efficient while collecting more dollars!

Scoring Solutions is interested in helping our clients become more efficient and effective with their credit and collection decisioning processes.  Please contact us at score.info@scoringsolutions.com  or call us at 678-672-5450 ext. 362 if you need more information on any of these subjects.