Digital Scorecard Solution
Digital Scorecard Solution– Secure a Way to Lend Money by using Machine Learning.
Have you ever heard about Digital Scorecard Solution? Have you ever dreamt that one day it would be possible to manage lending risk without access to a Credit History or Data from a Credit Bureau? With fast developments in Machine learning (ML), anything is possible!
OLSPS Digital Scorecard Solution is more extensive than traditional Scorecard Solutions.
OLSPS Analytics has designed a Machine Learning based Digital Scorecard Solution which enables financial institutions to offer loans where previously not possible, due to a lack of Credit Bureau data, using alternative non-traditional approaches and sources of data. The unique feature of this digital scorecard solution is that it allows for the efficient development of in-house scorecards without relying on traditional data sources, like data from Credit Bureau. Even where Credit Bureau data is available, the Digital Scorecard Solution can supplement the existing Credit Bureau scores with non-traditional data sources to reduce risk and provide an edge over the market.
The difference of this digital scorecard solution is that it allows for the efficient development of in-house scorecards without relying on traditional data sources like data from Credit Bureau.
The Digital Scorecard Solution evaluates each customer’s score on specific variables such as:
• Mobile usage • Demographics • Value chain • E-transaction history • Psychometrics
OLSPS Digital Scorecard Solution is flexible, customizable, and augmented by using traditional data should this be available. OLSPS Digital Scorecard Solution can be integrated into clients existing system and can be configured for real time scoring.
With the use of industry standard methodology, combined with advanced analytics, this scorecard solution will enable not only Big Financial Institutions (Commercial Banks, Savings and loan associations, Credit Unions, Brokerage Firms) but Micro-finance Institutions (organization that offers financial services to low income populations) the ability to optimise their decision-making processes and manage risk through the use of automated scoring calculations.
Digital Scorecard Solution is accessible to all the Micro-finance Institutions
OLSPS Digital Scorecard Solution takes input values from the user in order to alter the scale of the scorecard. This dynamic nature makes the solution accessible to all the Micro-finance Institutions. The output from this solution will be a 3 digit score that represents a customer’s creditworthiness. The score will be used in conjunction with any existing business rules to determine the credit risk of each potential client. Each Micro-finance Institution would determine their own score threshold which segments good and high risk clients. Additionally, OLSPS can further guide the Micro Finance Institutions to determine thresholds.
Furthermore, the solution is fully customisable to include business rules that are specific to each Micro-finance Institution.
For example, if an applicant has a credit score value less than a particular threshold, an instruction can be given to grant credit subject to another limit. This will ensure credit is being issued subject to the Micro-finance Institutions internal rules and regulations, as well as capture existing business knowledge in the final risk score.
By using updated telecommunications data, value chain and transactional data, along with the business insight gained from close interaction with various role-players in the relevant Microfinance Institutions, OLSPS Analytics will develop and deploy a powerful Digital Scorecard Solution for your business.
OLSPS Digital Scorecard Solution tool operates on a digital platform that performs 3 fundamental tasks:
• Data integration: Integrating alternative data (e.g. transactional and motivational) from as many relevant sources as possible, either directly or via purpose built digital platforms (such as data collection from psychometric tests).
• Predictive analytics: Using the acquired data to generate a three digit score which will indicate the level of risk for each potential client.
• Integration of business rules: using business insight to complement the predictive model for a tailor made decision outcome. This will ensure credit is being issued subject to the MFIs internal rules and regulations.
Deployment of the Digital Scorecard Solution
OLSPS Digital Scorecard Solution will be deployed on OLSOLV, a front end developed by OLSPS Analytics. Scorecard modelling using predictive analytics involves numerous complexities that require advanced statistical and data mining knowledge. OLSOLV simplifies the creation and deployment of data mining solutions, enabling less skilled users to derive all the benefits from data mining software without the need to be data mining experts.
Would your Financial Institution like to expand your footprint into an alternative lending market, reduce risk and increase the number of reliable customers? Contact us today to find out how we can assist your organisation!