Scientific and Technical Journal

ELECTROTECHNIC AND COMPUTER SYSTEMS

ISSN Print 2221-3937
ISSN Online 2221-3805
PRACTICAL USING OF SCORING CARDS’ DEVELOPMENT METHODOLOGY FOR AUTMOBILE LOANS RISKS ANALYSIS
Abstract:
This article is devoted to scoring cards development. The main stages and roles during the building of scoring cards are discussed. The process flow for scorecard development includes such stages as data processing and priory analysis of characteristics, development of priory scorecard, rejected inference, deep analysis of characteristics, final scorecard development and validation.On example of automobile loans it is shown how to implement scoring cards to existing scoring process in banks. Also it is demonstrated how to include rejected applications in credit scoring process and also the importance of such action for increasing preciseness of  decision making The process of using rejected applications is called reject inference and could be implemented only after building of a credit scorecard for approved applications. After building of scorecard the rejected applications are included in ration which is accepted in bank for such type of credits. After this the most important variables (characteristics) and their predictive strengths could be defined. New scoring card as a final scoring card is built on accepted and rejected credit applications. Validation of the credit cards and choosing the best one is the final stage of the process of development scoring card. After this the chosen scoring card is implemented in bank but still monitoring and controlling are provided. During implementation of the credit scorecard the best cut-off is also detected but it could be modified after implementation of the scoring card.
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DOI
References
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  5.  Kuznietsova, N.V. (2016). Scoring cards as a tool for risks’ analysis [Skoringovi karti yak instrument analizu rizikiv] 18th International Conference “System analysis and informational technologies”, Kyiv, pp. 106–107.
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2017-11-16 11:41:48

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