Scoring is defined as a kind of automatic system that serves as a support to provide advice on credit decisions, that is, a computer program that, based on the information provided by the user, can analyze and prepare a series of recommendations for that how to approve or not a financial operation. This means that this application performs the functions of a risk analyst, but in this case it is a computer that uses a kind of artificial intelligence. The main objective of scoring is to reduce the risk of the human element as much as possible and also to level the responses that are issued to credit applications.
Scoring can be classified into several types, such as mortgage, business and consumer, however all of them converge in carrying out an evaluation of the possibilities of a financial operation of any amount, for a client, finish for being problematic and ends up going into default. If the application results in a lower figure than that stipulated by the bank, said request will be approved.
In order to carry out this analysis, it is necessary for the program to carry out studies of income with respect to the payments to be made, as well as debt rates in relation to equity or, failing that, the seniority indicated in the employment contract of the applicant, each of these points will be a point to be evaluated, in this way the proposal will be valued and taken into account based on the formula and algorithm that has been used to prepare the scoring, in addition to the bank's credit standards.
The main advantage of scoring is the quick study of the applicant, which facilitates the approval or not of the credit, which greatly increases efficiency, since a procedure that previously could take hours and even days, not to mention, becomes simpler. that the evaluations are carried out in a partial and egalitarian way, thus avoiding the different appraisals on the part of the human element, which allows the financial institution to save large sums in the evaluation of the proposals.
