Asset Finance

Consumer Finance

Motor Finance

Understanding Credit Scoring – January 2018

Programme Overview

09.15    Welcome and introductions

09.30    What is scoring and why credit providers use scoring

  • Definition of credit scoring
  • Various sources and types of data available
  • Why scoring is used so widely within the credit industry

10.30   What is a credit scorecard?

  • The basic principles of what a scorecard is and it’s developed
  • Time frames
  • How to classify accounts as ‘Good’ or ‘Bad’

11.00    Break

11.15    What is a credit scorecard? Part 2

  • What a developed scorecard looks like
  • The pros and cons of various potential scorecard items

12.00    Data Quality and Data Quantity

  • The various aspects of data quality – accuracy, reliability, stability, different channels, etc.
  • How many scorecards are needed?
  • How many cases to build a scorecard?
  • How to resolve data quality and data quantity issues

13.00    Lunch

13.45    Implementation

  • Validation
  • System testing
  • Approaches to scorecard cut-off strategy

15.00    Break

15.15    Scorecard monitoring and tracking

  • Why it’s necessary to monitor scorecards
  • What reports should be produced
  • Deciding when a scorecard should be replaced

16.00    Management of over-rides

  • Definition of over-rides and why they occur
  • Strategy analysis and the impact of over-rides

16.40    Closing Remarks