CASE III: WITHOUT CREDIT HISTORY
The client is a credit card issuer looking to rapidly expand its loans by targeting individuals with little or no track record in the traditional Credit Bureau.
Its internal risk modeling department wanted to have a score capable of classifying and segmenting the population of individuals to be able to select those with a good profile of compliers to be incorporated.
The final score model was implemented and allowed to approve 11% of clients with no credit history and 9% of individuals with a low score from the Credit Bureau. These new populations represent approximately 60% of the new requests, therefore the impact on new approved requests is significant. It allowed to grow the approval rate up to 35%, with delinquency rates significantly lower than those of the approved portfolio of individuals who had credit history.
The incorporation of Coremetrix, achieved the double objective of achieving a significant increase in the general volume of loans, while maintaining, and even improving, the risk profile of the overall portfolio.