Credit Scoring Scheme Maintenance Function - Introduction

This function basically allows user to define the following towards the creation of relevant credit scoring schemes for system to perform the required credit application assessment, or evaluation:-

  • Credit scoring items (e.g., Customer Age (Years), Monthly Net Income and Occupation)

  • Weight record of respective credit scoring item (e.g., 0 - 17 years old, the weight = 0, and 18 to 21 years old, the weight = 1)

  • Guidelines of decision on each credit application under assessment or evaluation, based on the different range of possible total credit scores that can be achieved (e.g., 80.00 to 89.99 - Review, and 90.00 to 110.00 - Approve)

There are no fix rules in system to determine the scores range of each scoring item. Users need to determine themselves the best score, based on their bank’s or financial institution’s internal guidelines, country’s central bank guidelines, best market practices and other research documents.

This function allows user to create and save a credit scoring scheme as 'draft'. Once the same scheme is ready, it can be submitted for approval. During approval, the maker will not be able to make any changes to the credit scoring scheme. However, during approval, both the maker and checker can send the credit scoring scheme for rework, of which the maker or checker can then make amendment of the scheme details.

The credit scoring scheme created in this function can be tagged to the related credit scoring business rules at the 'Business Rules' function. However, only credit scoring scheme code that is active and has been approved (consider 'in effect') can be used for the credit scoring and total credit scores' computation in system.

Nevertheless, only 'draft' credit scoring scheme can be deleted in this function.