Credit Risk Scorecards
Improve credit risk decisioning with Principa's scorecard services.
Achieve optimal decisions with world-class scorecards
Principa employs a variety of best-practice credit scorecard building techniques, including mathematical programming, regression modelling, optimal segmentation-seek employing genetic algorithms, and reject inference parcelling amongst others.
Principa offers the following scorecard solutions:
Credit Scorecard Monitoring and Validations
Principa has extensive experience in monitoring and validating a variety of different scorecards giving you, the credit granter, comfort in understanding the optimal time to re-align, fine-tune or redevelop a scorecard. Principa has also worked with multiple credit granters in setting up a monitoring schedule for internal monitoring purposes.
Credit Risk Scorecard Alignments
Principa’s scorecard alignment process allows you piece-of-mind that the scorecard is ranking risk and that your cut-offs are tied back to an expected score-to-odds relationship. This is essential in ensuring profitable decisions and is a necessary exercise every 1-2 years.
Bespoke Scorecard Development
Custom scorecards are data-driven models built on the previously applied population. These scorecards allow for the best possible credit decision and the setting of scorecard cut-offs utilising expected volumes and approval rates. Semi-expert models are hybrid of expert and custom models.
Where no data is available, expert models are the most appropriate for your portfolio. These models are built on the back of the client input combined with Principa’s experience in the region, with the product and with the customer demographic.