Monitoring / Re-Estimation of Credit Risk

While a customer is in credit, he/she presents a particular pattern of payment behaviour at regular intervals (e.g. months). A Scoring Platform that uses Data Mining algorithms (e.g. DECISION FORCE) can:

  • Detect the rules that dictate the customer payment patterns during the credit period.
  • Predict the expected customer payment behaviour in the near future. Monitor the effect of changes in the customer profile towards his/her payment behaviour.
  • Segment customers according to the level of risk, solvency and profitability regarding their payment behaviour.

The credit market has been rapidly expanded these last years. New customers continuously enter that market. As a result credit profile for the customers of a financial institution is frequently changing. The managers themselves are not likely to immediately and precisely clear up these frequent changes so that they could directly incorporate them into their assessments.

Nevertheless, an Intelligent effective System can take into account the most recent customer cases an update the credit scoring models in a few seconds! The more such customers become available, the more contemporary the credit scoring models become.