EXPANSION OF CUSTOMER CREDIT PARAMETERS
Scoring Solutions™ recently developed a scoring system to decision subprime automotive credit applicants.  The client wanted to expand their future customer base by expanding their credit policies and pricing programs.  In the past the client had used a tightly defined credit and pricing process which limited the scope of the dataset that our client had available for model development.  In order to overcome this significant shortage of broad performance outcomes, Scoring Solutions collected and analyzed the performance of surrogate loans – similar loans made with other lenders in the same credit industry and in approximately the same time frames. The surrogate lenders used completely different credit criteria allowing this client to view customer performance from a much broader perspective.  This surrogate data was an important enrichment to the modeling data, allowing for the development of more robust scoring models with improved predictive performance and much broader market applicability.

IMPROVING CREDIT SCORES FOR SMALL AND MICRO BUSINESS LENDERS
The recession caused a major increase in delinquency and losses for most lenders focused on small and micro businesses.  As a result, small business lenders are looking for ways to improve their decision making and to do a better job of identifying credit risk.  One key way to do this is to analyze and identify the most predictive sources of credit data used in making the credit decisions.  The most predictive data sources can then be incorporated into new or updated scorecards that provide greater predictive accuracy.  A critical assumption for effective credit scoring is to use the most predictive data sources available to maximize the predictive power of the scorecard – the more predictive the data, the more predictive the scorecard, and the better the rank ordering of risk.  Contact Scoring Solutions at score.info@scoringsolutions.com or 678-672-5450, ext. 362 for the entire article which provides results of using various sources of data when developing custom models for small and micro businesses.

CLIENTS CHOOSE SCORING SOLUTIONS FOR CUSTOM MODELS AND MODEL EVALUATION
A regional bank selected Scoring Solutions to evaluate their acquisition scorecards to understand the impact of the recession on the scorecards and incorporate improvements to enhance the scorecards’ predictability.

A small business lender recently chose Scoring Solutions to develop custom scoring models.  The initial part of the analysis will evaluate the most predictive credit attributes selected from several alternative sources of data including commercial credit bureaus, company information, financial deal, and economic data. The new scorecards will be implemented on Score360®, a scoring and attribute engine developed by Scoring Solutions for rapid implementation and deployment of scorecards, strategies, and credit bureau attributes.  Segmented decision strategies will be applied using Decision Engine software.

To learn more about how we can bring value to your organization, call us at 678-672-5450 ext. 362 or e-mail us at score.info@scoringsolutions.com.
 

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