Credit Scoring

Trends and Challenges

Ever wonder why you can go online and be approved for credit within 60 seconds? Or get pre-qualified for a loan without anyone even asking you how much money you make? Or why you get one interest rate on loans, while your neighbor gets another?

The answer is credit scoring.

A credit score is a numerical index, which represents an estimate of an individual's financial creditworthiness. Lenders, such as banks and credit card companies, use credit scores to determine credit limits and interest rates. Credit scoring helps a bank (or any credit granting firm) reduce its defaults, improve process efficiencies & approval times and move to an objective and consistent method of making credit decisions.

Your credit score is a number generated by a mathematical algorithm -- a formula -- based on information in your credit report, compared to information on tens of millions of other people. The resulting number is a highly accurate prediction of how likely you are to pay your bills.

Credit scores are used extensively, and if you've gotten a mortgage, a car loan, a credit card or auto insurance, the rate you received was directly related to your credit score. The higher the number, the better you look to lenders. People with the highest scores get the lowest interest rates.

Too much credit exposure can lead to high default rates and charge-off percentages; too little exposure often means lost business and revenue. SEEinfobiz helps companies manage this balancing act with SEEinfobiz's Credit Scoring, which provides fast, accurate credit scoring for nearly all consumer-lending products.

It is critical that credit granting companies have a management system that is capable of performing detailed risk analysis while supporting advanced credit assessment strategies and programs. As companies continue looking for ways to maximize returns from their customers in the face of fierce competition and low brand loyalty, the need to reduce costs and manage business risk by evaluating customers' credit worthiness becomes increasingly important. Because of the intense market pressure, quickly and accurately determining credit risk for both current and potential customers can be a significant competitive advantage.

Our Solution

SEEinfobiz's Credit Scoring is a consumer credit rating tool which assists in accessing the credit risk standing of individuals. The technology behind the SEEinfobiz's Credit Scoring model is based on a neural approach. A valuable decision-support tool, scoring enables organizations to establish and maintain successful long-term customer relationships, safeguard and maximize revenue and keep ahead of the competition.

SEEinfobiz's Credit Scoring enables organizations to build their own scorecards with which to measure and manage customers during all stages of the customer lifecycle: from initial prospecting and marketing, acquisition and scoring for credit risk and fraud, behavior and collections, to cross-selling and retention.

SEEinfobiz's Credit Scoring solutions rank-order consumers according to the likelihood that their credit obligations will be paid as expected. They play a pivotal role in billions of business decisions each year. With accurate, reliable and fast credit risk assessment provided by our solution, credit grantors are empowered to make more profitable, automated decisions regarding prospects, applicants and customers.

SEEinfobiz's Credit Scoring solutions are widely regarded as essential building blocks f or devising successful, precisely targeted marketing, origination and customer management strategies by credit grantors and telecommunications companies.

Companies rely on SEEinfobiz's credting scoring solution to assess consumer credit and bankruptcy risk in order to make more profitable decisions at all stages of the credit lifecycle—in customer acquisition (prescreening and marketing), originations and underwriting, and customer management.

Our industry-specific scoring, provide accurate forecasting of risk within specific industries: auto, bankcard, finance and installment products. SEEinfobiz's credit scoring is a new credit risk score designed specifically to help lenders extend credit to consumers in new markets. Because it is based on non-traditional credit data, it can effectively predict risk for the growing number of consumers that fail to receive a traditional score due to non-existent or "thin" credit histories.

SEEinfobiz's Credit Scoring provides a solution designed to help you more accurately develop and track credit risk scores in-house, thereby reducing business risk, maximizing revenue opportunities and providing better services to customers.

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Our credit scoring solutions combine award-winning data warehousing and analytics, consulting services, and industry-specific data architectures to allow you to:

Maintain a continuously improving credit scoring process in-house.
Provide faster, cheaper, more flexible credit assessments.
Customize the scoring process and respond quickly to changing demands.
Minimize credit risk and maximize profitability.

With SEEinfobiz's Credit Scoring, you can perform application and behavioral scoring to assess and control risk within existing consumer portfolios and to improve acquisition strategies. Through enterprise data access and collection, as well as predictive analysis, you'll get a better understanding of the specific risk characteristics and subsequent attributes that lead to delinquency, default and, ultimately, bad debt.

SEEinfobiz's Credit Scoring is an improved and more robust credit scoring system which goes beyond fundamental analysis of a company to determine its credit risk. Utilizing the internationally recognized credit scoring solution, the ratings are calculated with information on market prices and financial statements. SEEinfobiz's Credit Scoring measures the probability that a public listed or private company will default in a given a time frame.

SEEinfobiz's Credit Scoring is one of the most objective and forward-looking credit assessment evaluations available today. It includes enhanced features positioned to equip today's credit-decision maker with the most flexible and dynamic default probability predictors in the market.

Benefits:

Superior risk data collection and management – Easily access and match all prerequisite third-party bureau, application, billing-payment and collections data. Perform enhanced market segmentation and functional alignment.

Build an easy-to-access, consistent, robust data mart powered by integrated data extraction, house holding / deduplication, mapping and loading capabilities.

Faster, cheaper, more flexible scorecard development – SEEinfobiz's Credit Scoring for Banking enables rapid in-house development, validation and implementation of application and behavioral scorecards.

It facilitates improved time-to-market performance as well as enhanced market segmentation and pricing strategies that are aligned with the bank's risk tolerance, thereby controlling bad debt and streamlining account servicing and application scoring processes.

Unequaled performance reporting – With SEEinfobiz's Credit Scoring you also receive a litany of Web-based scorecard stability and portfolio performance reports. You can detect and preempt scorecard instability and deliver performance information to executive management and regulators.

It enables increased profit, and decreased bad debt, by effectively defining those customers who fit the profile of low risk, low propensity for deactivation and likely to generate repeat requests for credit

The system's flexibility allows credit scoring through segmentation by specific product lines, and different sets of customer profiles