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Our Decisioning Software
Transform your lending workflow with DecisionStation™ – the all-in-one loan origination software that reduces processing time, improves decision accuracy, and ensures compliance for auto and retail financing.
Our Scoring Models
What are scoring models?
Scoring models are developed by applying statistical procedures to historical data with the objective of predicting a future outcome. They are based on the premise that past behavior is a good predictor of future performance. A scoring model’s purpose is to predict the likelihood that an outcome of interest will occur in a specified time period. Some major applications include loan defaults, pre-screening, bankruptcy, limit assignment, collection modeling, and predicting marketing responses.
Types of models
These scorecards are developed using client’s specific historical data and performance to predict the probability of an applicant going bad over a certain period. Naturally, customization results in a more relevant and accurate prediction tool.
Ready-to-use scorecards that have been developed using very large amount of in-house data. Models are catered to specific lending portfolios and environments.
Our semi-customized scorecards use decision-tree modeling or point assignments to mimic the underwriters behavior in lending. Generally developed for clients without sufficient lending data or lenders who want to automate their own decision-making.
Consulting Services
Which of your loans are actually making you money? Which products, dealers, distribution channels, and branches are supplying you with the best paper. You need to know
- • How up-front and ongoing costs vary?
- • How long a loan must perform before breaking even?
- • Where and at what cost you are getting repeat business?
- • How much more volume you can add and still increase your net profit?
These are tough questions! The answers may not be available immediately, but CBD can get you on the road to finding them. Together, we’ll identify the key questions.
Find the data that can answer them
Begin to construct an accurate model.
Profitability modeling is a natural application of well-constructed data warehouses. Lets take the first step toward sharpening your focus on profitability with every decision you make. We’ll design and produce those first results, and work with your users to improve them and develop data marts with the files, views, reports, and graphs they need and want.
If you prefer, CBD can wrangle your data, especially legacy data, at our site and install it on your platform when you’re ready. We can initiate the process in conjunction with a scoring project. We can also deliver analyses, reports, and more. But we do these things with an eye to making the warehouse an integral part of your company’s future.
Reduce your purchase of multiple reports, and speed up the approval process. Each of the three national consumer credit bureaus will tell you that they’re the best. But they all admit that there are a few geographic areas where they’re only, well, a close second to the others. And they base their claims on overall coverage, not on the information that’s critical to your business decisions.
CBD’s Best Bureau Choice is a comparison study methodology. Using matched reports from the three bureaus, we find the regions where each one excels at delivering what your business needs to know about an applicant.
Every lender needs a consistent credit policy. You have one – but do your people follow it? More importantly, do they understand it? Your associates may have widely differing assumptions about what makes a creditworthy customer, what will serve your lending operations bottom line, and when it’s right to bend the rules.
Credit Check-Up-TM, our review and validation process, evaluates both your automated and manual decision-making processes. We will:
- • Interview staff members from different departments
- • Determine what you and your colleagues believe is important to the lending process
- • Validate your scorecards
- • Examine override procedures
- • Assess the availability of key data
- • Review policies.
The results will allow you to close the gap between policy and practice, renew or replace outdated tools, and get your team pulling together.
If you don’t already have a scorecard in place, our Credit Check Up is a great first step in the development process.
You’ve set up a first-rate collection operation. Systems, management, training, and incentives are all in place. Now you need to find the treatment strategy for each group of delinquent accounts that will maximize returns. Collection strategy analysis helps you set up experiments, evaluate the results, and fine-tune your timing, treatment, and outsourcing decisions.
CBD can provide 500+ variables, or data points, from any of the three main bureau reports. These variables can then be used in any way by clients to make lending decisions.