Credit Risk

Scorecards

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.

In addition to the development of bespoke scorecards, we offer alignment, verification and monitoring of your existing scorecards.

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

Expert Scorecards

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.

If you’re looking for a scoring or decision engine, read more on DecisionSmart.