Umtha

Psychometric Risk Assessments

Determine risk when onboarding customers with or without a bureau record.

Psychometric scoring provides an opportunity to create data through a quick test that results in a predictive score up to 40% stronger than demographic scores.

Principa has partnered with Astra Constantine, a specialist provider of credit risk Psychometrics in Africa to distribute Dynamic Risk Assessment™ to the South African credit industry.

How does it work?

During the digital application process, the consumer will be redirected to an assessment page that is hosted in the cloud by Principa where they will be required to answer 10 questions. The quiz is relatively simple and requires the consumer to choose images that describe a specific situation. On completion of the test the consumer is redirected back to the application process of the client. From the results of the test, a generic score is generated. This score represents the applicants credit risk.

Dynamic Risk Assessment uses a situation judgemental test that measures an individual’s traits, values, decision making, emotions and decisiveness. All of these are combined into a final score that is highly correlated with credit risk.

The test takes between 5-7 minutes with an excess of 59 data points collected!

The solution is fully cloud based and can be accessed via mobile device, tablet or PC. It can be run as part of your origination process with results fed back to your decisioning software. Whilst this is an ideal solution for consumers with no credit unaware, it can also be used on the credit aware segment who score near the cut-off as the test adds discriminatory ability on top of a standard credit score.

What is involved and who is best suited to use this technology?
Any company that grants credit to consumers can use this product however, it is best suited for business models that grant low credit values to high volumes of consumers. Technology integration is done via the Dynamic Risk Assessment API’s. No personal data is stored within the DRA system and hence POPIA related issues are a non-event.

Why use Dynamic Risk Assessment?

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