Radix Analytics Pvt Ltd

Credit Scoring for Micro Finance Provider

Radix Analytics Pvt Ltd > Scoring Models > Credit Scoring for Micro Finance Provider
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Issues & Objectives

  • A Multi-finance company providing financing facilities for small and medium enterprises in Indonesia.

  • The objective was to develop multiple portfolios for different loan types.

  • Link the scorecard to core banking system to produce instant score at the time of application

Challenges

  • On account of data security, the company developed the model in-house. No data was shared with Smart

  • Most of the data fields are in local language

  • Smart guided the whole process remotely with only one on-site visit and many hours of online consulting. This involved detailed analysis of numerous variables for each scorecard

Project information

Skills

Advanced Statistical Techniques

Client

NBFC

Domain

Credit Scoring

Location

Indonesia

Solution

  • The whole process is automated with Smart proprietary software, ACreS

  • 4 portfolios were built one each for Retail SME, Corporate SME, Retail Vehicle Loan and Corporate Vehicle Loan.

  • In absence of core banking system, webservice is created to input data and receive instant score

  • Newly entered data is stored in a database

Benefits

  • Process automation, ensured consistency, decreased manual work and increased accuracy.

  • Generation of scorecards in real time with performance measures

  • Variable transformations are automatically accounted in scoring population

  • Deployment of the model and scorecard for scoring new applicants.

  • Easy monitoring of score with the help of interactive reports