Credit Risk Scorecards
Improve credit risk decisioning with Principa's scorecard solutions
Achieve optimal decisions with world-class scorecards
We employ a variety of best-practice credit scorecard building techniques, such as mathematical programming, regression modelling, optimal segmentation-seek employing genetic algorithms and reject inference parcelling.
We offer the following scorecard solutions
Credit scorecard monitoring and validations
We have extensive experience in monitoring and validating a variety of different scorecards. Our expertise in understanding the optimal time to re-align, fine-tune or redevelop a scorecard is what brings comfort to credit granters. We are also experienced in working with multiple credit granters, setting up a monitoring schedule for internal monitoring purposes.
Credit risk scorecard alignments
Our scorecard alignment process provides our clients piece of mind in that the scorecard is ranking risk and that cut-offs are tied back to an expected score-to-odds relationship. Alignment is essential to ensure profitable decisions and should be done every 1-2 years.
Bespoke scorecard development
Custom scorecards are data-driven models built on the previously applied population. They allow for the best possible credit decision and the setting of scorecard cut-offs, utilising expected volumes and approval rates. Semi-expert models are hybrids 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 client input combined with our experience in the region, with the product and with the customer demographic.