Overview
Customised Application Scorecards are portfolio specific credit risk models used at point of application to determine whether an applicant is a good or bad credit risk. They are built using your own historical application data, using a consultative approach between Veda Advantage experts and your credit risk management team.
Customised Application Scorecards can benefit your business by:
- Improving profitability
- Reducing credit losses
- Improving portfolio and management control through consistent and objective decision making
- Providing improved customer service
- Improving processing efficiency through automation
- Ensuring responsible lending practises
- Providing better prediction of expected losses.
User and product specific scoring models are customised scorecards built on a user's specific data, for a particular portfolio. As a result the scorecards are extremely predictive enabling improved decision making.
A Customised Application Scorecard provides a score which summarises historical credit application data into a risk index that can easily be used in strategy setting.
Cut-off strategies can be set based on the score enabling applications to be automatically accepted, referred or declined. As a result customers can be approved or declined rapidly - improving customer service and creating opportunities for marketing offers. Operational costs can also be reduced.
A Veda Advantage bureau score can be "stepped-in" to the Customised Application Scorecard. The Veda Advantage bureau score provides a holistic view of customer risk. The bureau score reflects credit enquiries performed at any institution giving you visibility of all the credit activity of a potential borrower and a much improved profile of the inherent risk associated with that customer.
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