Credits Modelling

Credits Modelling is the basic practice of assessing the creditworthiness, reputation or engagement risk attached to an individual or a collection of beneficiaries.

With Finscale Artificial Intelligence, most Credit Modelling is an automated use case with few exceptions of flagged edge cases requiring human intervention - approvals or rejections.

CREDIT SCORING, PRICING AND RISK RATINGS:

Component	Feature	Description	Secondary Description
Credit Scoring Engine	Credit Scoring automation	Determine chances a borrower will fail to make a payment on a loan and identity credit risk, credit score	Ability to generate a credit score based on business rules
Pricing Engine	Pricing with Interest	Determine a loan offer for an eligible borrower based on dynamic Risk category, explicit Interest, Principal Range, amortization structure	Ability to create a loan offer based on configured System Administration
Pricing Engine	Pricing with Charges	Ability to post, reconcile or map fees to loan offers at entry point from LMS	Ability to associate Fees with Loan offer based on configured System Administration
Risk Rating	Risk classification framework automatiom	Determine lending risk buckets associations with loan portfolio distributions	Ability to tag Risk buckets based on configured dynamic Risk categories in System Administration

DATA MODEL RULES:

Feature	Description
Run workflows to automatically underwrite and verify applications	Ability to run workflow scenarios based on System Administration mappings

CREDIT MODELLING MEMO:

Component	Feature	Description	Secondary Description
CREDIT MODELLING MEMO	Loan modelling: Dynamic Risk Assessment	Determines if a beneficiary's unique credit application is an acceptable risk.	Model assesses the beneficiary's ability to repay the credit based on an analysis of their credit, capacity, and collateral.

System Administration: Dynamic Score Card Generator:

Design and Setup Score card components for Credit modelling and risk indicators
provides ability to create, delete, update and read Eligibility Index, based on multiple factors
provides the ability to create, delete, update and read the Stability Index, based on employment tenure & employment type factors
provides the ability to create, delete, update and read the Affordability Index, based on income factors such as DTI, existing loan liabilities, LTV etc
provides the ability to update and read externally managed Credit Reporting System Data such as Experian, CRIF etc.
provides theAbility to create, delete, update and read Character Index: Social Capital
provides theAbility to create, delete, update and read Character Index: Social Media
provides the ability to create, delete, update and read Alternative Assessment Index: Expense Assessment & Spend analysis: Spend management by tracking spending patterns of individuals, with saving suggestions and financial advice for ROI
provides the ability to create, delete, update and read Alternative Assessment Index: Income Tax Assessment
provides the ability to create, delete, update and read Alternative Assessment Index: Financial Statement Assessment
provides the ability to create, delete, update and read the Historical Behaviour Index: Repayment Behaviour for Reschedule and Refinance

System Administration: Business Rules for Lending:

Workflow Components of Loan Products Lifecycle Events other than standard events such as Approval, Underwriting, Disbursal, Closure
provides the ability to create, delete, update and read loan lifecycle events and branches of loan lifecycle events

Screening and filtering criteria based business rules for Loan Underwriting: Pre Screening or Eligibility Analysis
provides the ability to create, read, update and delete screening business rules in a graphical approach
provides the ability to create, read, update and delete weightage to different screening criteria
provides the ability to create, read, update and delete validation and restrictions in screening criteria in a graphical approach

Define Risk Categories for Lending (Risk rating)
Ability to create, read, update and delete Risk Categories definitions
Ability to create, read, update and delete Risk Categories mapping to specific Users
Ability to create, read, update and delete Risk Categories mapping to Loan Products
Ability to create, read, update and delete Risk Categories mapping to dynamic Score Card
Ability to create, read, update and delete Risk Categories mapping to Loan Portfolio management

System Administration: Portfolio's Risk Management
Definining Segmentation for Portfolio's Risk reporting, compliance and internalization, identification of Risk drivers, triggers
Generator for borrowing products including interest rates, maturities, amount, etc.
Generator for creating sectors or industry types for lending