context
Managing credit risk is a difficult task. Credit scoring is there to support all industries into reducing the risks. In the financial services industry, credit scoring is subject to compliance rules defined by the Basel II Accord.
Credit scoring embraces a set of decision models and techniques that classify each consumer into a certain category, based on several attributes. Although mostly used in banking and insurance companies, credit scoring can be adapted to any other industry dealing with credit risk.
key considerations
The realization of a successful credit scoring system relies on several parameters:
- business understanding: a strong asset required to select the appropriate attributes of the credit scoring model and to analyze the outcome of the system.
- model selection: several models and techniques exist, all with their own advantages and disadvantages. Careful model selection is a primary success factor in a good credit scoring project. The model providing the most accurate results is always the one that should be selected.
Keyrus and credit scoring
Keyrus has acquired in-depth business knowledge about credit scoring in various industries. The experience gained positions Keyrus as a key partner for all companies looking to successfully implement an adequate credit scoring system.
