It’s the million-dollar question: to credit score or not to credit score?
Over the last few years, credit scoring has become one of the most requested additions to a core banking platform.
With the promise of increased profitability, lower operational cost, and above all significantly decreased loan origination and approval time, few financial institutions can resist the urge to implement credit scoring.
But how effective credit scoring actually is depends on the data it is fed. The availability and quality of data further depends on the flexibility of the underlying core banking system.
When it comes to implementing credit scoring, some questions may naturally come to mind.
- Which data should a credit scoring system take into consideration? Will it increase your competitiveness out of the box?
- Should your credit scoring system weigh more internal data or external data?
- Has the pandemic increased efficiency of credit scoring models or have they deteriorated?
- Is it wise to implement credit scoring now, or should a bank first solidify its core banking system foundations?
A credit scoring system is only ever as good as the data it processes, and what data is provided by a flexible, function core banking system like Oradian.