Improving the accuracy of credit scoring

Improving the accuracy of credit scoring

Description

Most microcredit and microfinance companies already have an established IT infrastructure that meets the urgent needs of the credit business. In that and number and credit scoring.

At the same time, the accuracy of credit scoring is one of the most important elements of the success of a company on the microfinance segment. When lending inevitably comes the following types of economic losses – the issuance of credit to a bad client, the refusal to issue a good one. The fewer such errors, the less losses and the greater the profit, respectively. The accuracy of the classification of clients in the broadest sense reflects such indicators as AUC and GINI.

The solution offered by FscoreLab within the framework of increasing the accuracy of the current solution (scoring model) allows to increase the accuracy and, accordingly, to increase the profit of the company painlessly for the existing business and IT-processes.

How are the works done?

  • Conclusion of confidentiality agreement between the Customer and FscoreLab
  • The construction of the scoring model is carried out according to the requirements of the customer for retro-data on loans given out (returned or delayed) in his company using methods of machine and in-depth training
  • Estimation of accuracy on a test sample
  • Making a contract, prepayment
  • Testing “on the battlefield”
  • Final calculation

It should be noted that the price of the final decision on the development of the scoring system depends directly on the increase in accuracy achieved within the project and is formed individually, depending on a number of parameters.

The project duration is usually from 30 to 60 working days. As part of the development of scoring, the microfinance organization receives not only a fundamentally new quality solution, but also helps to integrate into the existing IT infrastructure, recommendations for further development of data analysis within the company are best practices.

You can order the development of scoring for MFIs in the form below.