engleski

Forward to the Past: Bringing Credit Scoring to new Countries

The transition Eastern European countries have never used credit scoring techniques, the main reason being that credit was not a common product at all there. The presentation will discuss practical questions, problems and solutions encountered when dealing with credit granting companies (banks, card issuers, finance houses) wishing to use credit scoring in such a country. Typically, some kind of "custom generic" scorecard is required, because there aren't any existing scorecards or country experience which could be used for a "generic" scorecard. On the other hand, there is often information available on different products or populations. Therefore, the main challenge is to filter through whatever is available, estimate the usefulness of information and apply it in some capacity to improve what would otherwise be more of a guesswork. Particular attention will be given to scoring variables which are often misunderstood and misused (income, occupation) as well as to the role of external information, because credit information companies are nonexistent. Some interesting examples from the real world experience were given.

credit scoring; risk management

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