Leverage FinScore's Credit Analysis Tools for Better Risk Management
Using Alternative Data for Advanced Credit Risk Analysis and Management
Banking and lending operations come with the factor of risk – it’s inevitable. When you lend out money to borrowers, they might default and fail to repay the dues on time. These result in major losses to you, which is why credit risk analysis and assessment is paramount. It’s the basis for which banks and other lending institutions can calculate the likelihood of a borrower to meet contractual obligations or default on a loan.
In the Philippines, recent data shows that the country’s banks’ credit risk trend is improving. Companies and financial institutions are investing heavily in credit risk management solutions, with many creating in-house teams that focus solely on developing credit analysis tools to better assess risks. Over the years, with the rise of fintech, new innovations have empowered the banking sector to analyze data better and assess the risk profiles of customers.
Knowing Your Customer Better with Credit Analysis Tools
In any line of business, it’s always vital to have a strong understanding of your customers. Assessing a customer’s credit profile is only possible if the data you collect is up-to-date and accurate.
Aside from valuable information from a credit bureau, revolutionary credit risk analysis tools such as telco data give banks better insight to improve credit approval rates while reducing bad debt. Take a look at Finscore’s advanced credit risk analysis and management solutions.
Telco Credit Score
Our telco credit scoring system is built on various MNO data sources to effectively predict the creditworthiness of a customer. With over 400 telco data variables such as data and voice usage, location, top-up patterns, and many more, it's a credit analysis tool that provides valuable alternative insights to banks and lending institutions. FinScore's Telco Credit Score has extremely high predictive power as it's derived by the most advanced machine learning algorithms. It can be used as a standalone model or in combination with existing Credit Bureau and/or Social-Demographic models. As it offers a unique data source, you can address an unchartered market segment while also conducting an up-to-date credit risk assessment on your current market segment. The Telco Credit Score can be used as a credit risk analysis tool for various products: cash loans, purpose bound loans, credit cards, motorcycle loans, and more.
Customer Record Profile
FinScore's Customer Record Profile consists of several key telco metrics that are grouped on the basis of subscription type, SMS, top-up, time with operator, mobile data, and days between activities while ensuring that the privacy of users is fully protected. The Customer Record Profile can be used for credit risk management analytics, marketing analytics, creation of basic credit scoring models, segmentation and profiling, and fraud prevention.
Device Data Credit Score
Aside from looking into traditional data such as work tenure and source of funds, a borrower's mobile phone device is chock full of alternative data that can be very powerful in credit risk assessment.
Benefits of Using FinScore’s Credit Management Solutions
FinScore’s credit risk analysis and management solutions simplify the risk-profiling process, generating information on credit-invisible individuals in mere seconds. The insights gathered from our innovative credit analysis tools are accurate in predicting customer behavior beyond transactions.
Transaction data is only limited in tracking consumers when they purchase or make transactions, whereas telco data effectively reveals the behavioral patterns of customers. For instance, the frequency of load top-ups done on mobile phones is a clear indicator of a customer’s income level and location data provides insight into a customer’s job stability. A consumer’s digital footprint is often difficult to manipulate, so telco data promises to be an excellent credit analysis alternative. It also offers a more comprehensive overview of a customer’s socioeconomic activity, helping you better assess credit risk.
With cutting edge AI, advanced machine learning technology, and a long-standing partnership with SMART, FinScore has been at the forefront of delivering telco data scoring systems as effective credit risk and management solutions. We’ve onboarded one of the country’s biggest consumer lenders and delivered more than 3.5 million credit scores to partner institutions.
For more information and inquiries about our advanced credit risk analysis and management, contact us today.
Benefits of Using FinScore’s Alternative
Data and Fraud Detection Services
Whether you’re a traditional bank, a consumer loan company, or a credit bureau, FinScore’s fraud prevention and detection services can help your company increase approval rate and decrease your default rate. We’ll help you identify high-value legitimate customer segments from false and synthetic identities, income and employment misrepresentation, straw buyers, and other types of fraud – including those with a seemingly legitimate CIC credit report. This means lower losses and higher profitability for your institution.
More than 10 companies in the Philippines trust us for our digital credit scoring and fraud prevention tools. They’re comprised of large consumer banks, digital banks, thrift banks, consumer lenders, and digital lending platforms. You too can counter any damage done by fraudulent loan applications when you partner with FinScore.
Contact us today to learn more about how you can fully reap the benefits of our telco data driven geo-location fraud tools and other solutions. Reach out to us and we’ll schedule a meeting at your most convenient time.
For more information and enquiries about our telco data scoring system, contact us today.
