Psychometrics in Credit Originations

If 2020 was not hit by the COVID-19 global pandemic, many were touting 2020 as the year of alternative data. In the credit assessment world, data has typically incorporated demographic data and credit bureau data (where available), but now we are seeing alternative data playing more of a role namely in cellular behavioural data and psychometrics.

(more…)

Continue ReadingPsychometrics in Credit Originations

Shift happens: Top tips on Scorecard re-alignments

Principa employs a variety of best-practice credit scorecard building techniques including mathematical programming, regression modelling, optimal segmentation-seek genetic algorithms and reject inference parceling, amongst others. Through our credit risk scorecards businesses can look to improving their credit risk decisioning by 5-30%.

(more…)

Continue ReadingShift happens: Top tips on Scorecard re-alignments

10 ways of combating application fraud (part 1)

New technology gives the promise of greater enablement. But some of the shrewdest entrepreneurs understand that opportunity comes from the unintended consequences of new technology. So, let us take digitalisation of the loan application process: the opening of digital channels has enabled lenders to service their customers 24/7 and through APIs integrate with a host of sophisticated services. However, the advent of the digital channel has meant more opportunity for fraud.  The question to ask is:

(more…)

Continue Reading10 ways of combating application fraud (part 1)

The time is NOW for model validation and adjustment.

One of the major premises used in credit scoring is that “the future is like the past”. It’s usually a rational assumption and gives us a reasonable platform on which to build scorecards whether they be application scorecards, behavioural scores, collection scores or financial models.  That is reasonable until something unprecedented comes along.  You can read about this black swan event in our previous two blogs here and here

(more…)

Continue ReadingThe time is NOW for model validation and adjustment.

10 ways the COVID-19 crisis will affect your credit models (PART 1)

One of the basic principles of credit scoring and modelling is that the “future is like the past”.  Whilst robust credit models may be calibrated on multiple time periods, this assumes that trends in the past represent what is going on today.  COVID-19 is a black swan event – meaning in the modern day it really is unprecedented.  If you have never come across the term black swan, or if you have but no idea the origin, I recommend taking two minutes to read its really interesting etymology.

(more…)

Continue Reading10 ways the COVID-19 crisis will affect your credit models (PART 1)

15 Vital Customer Service Statistics You Need To Know In 2020

Today, more than ever before, customer service is the most important aspect of your business. With all your competitor’s that your clients can choose from, you need to offer the best experience and service to keep your customers happy – and to keep them as customers.

(more…)

Continue Reading15 Vital Customer Service Statistics You Need To Know In 2020