Scoring models

StatConsulting constructs various types of scoring models and scorecards, including statistical scoring models based on data provided by the bank.

We specialize in construction of empirical scoring cards customized to local market of the client, that provide more accurate approach comparing to generic scoring cards. A wide selection of methods we have at our disposal provides the benefit of increased quality of predictions for diverse values of the characteristics of data sets (size, type, definiteness).

As part of our services we offer the implementation of different types of Credit Scoring:

• Application Scoring used in situations when all the information about a client comes from credit application questionnaire and external sources.
• Behavioral Scoring aims to predict the customer's behavior by taking into account the information collected during collaboration with the customer. Behavioral Scoring is a pivotal element of ongoing monitoring of credit portfolio. It helps to lower high risk loans provisions.
• Profit Scoring is an extension of the basic scoring model. Not only it takes into account the probability of loan repayment, but also allows to estimate the profit from collaboration with a particular client. This is a more advanced model, as it takes into account a wide array of additional economic factors.
• Risk Premium Models allow to balance the credit risk by adjusting the price of the loan.

The choice of the appropriate model depends on the goals of the analysis and the properties of the analyzed data.

Credit scoring services

StatConsulting offers the construction of scoring models for the purposes of determining credit risk, including:

• construction of analytical repository and delivery of the data model necessary to build scoring models,
• construction of models determining the probability of occurrence of credit events,
• construction and implementation of scoring cards.

In addition we offer the following supplementary services:

• monitoring of existing scoring solutions,
• providing compliance with the requirements of the New Basel Capital Accord, as part of the construction and monitoring of scoring models,
• updating and modification of scoring models,
• supplementing scoring models with behavioral scoring, profit scoring and risk premium methods,
• analytical software supporting the construction of scoring cards - the StatScore application.