Why is a flexible Core Banking System the foundation of introducing efficient Credit Scoring?

The million dollar question – to Credit Score now or not?

One of the most requested systems added on top of the Core Banking System in the last years in – Credit Scoring.

With a promise to improve the profitability of  a financial institution, lower operational cost and above all – significantly decrease Loan Origination and Approval time, few banks can resist the urge to implement Credit Scoring.
But how effective CS is actually depends on the data it is fed. The data availability and quality further depends on the flexibility of the underlining Core Banking System.

Which data should CS system take into consideration? Will CS increase your competitiveness out of the box?
Should you have CS system weigh more Internal data or External data?

Has the Pandemic increased efficiency of Credit Scoring models or actually have they deteriorated?

Is it wise to implement Credit Scoring now, or should a bank first solidify their Core Banking System foundations?

Please remember – the CS system is only as good as the data it processes. Who provides the data? A flexible Core Banking system. It does not get more flexible than Oradian.

All this and more you can find in the advisory paper below, written by a renowned board member and advisor of international rural financial institutions.

Get the FULL advisory paper on Credit Scoring