| Credit Scoring |
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Credit scoring is used to predict a borrower's payment behavior based on an analysis of the payment behavior of similar clients in the past. Scoring methods have been used for commercial and consumer credit and for the insurance industry for many years. Recently, more and more microfinance and small business lenders have started to implement scoring methods, in order to:
Credit scoring in MSE lending has huge potential, in particular for institutions with a high volume of credit applications. BFC combines an outstanding track record in setting up effective MSE operations with extensive experience in credit scoring. We take into account preexisting business processes, lending product design, and human resource management, while providing hands-on advice to our clients in these areas. This comprehensive approach allows our clients to maximize the benefits of a successfully implemented credit scoring system. BFC's approach includes three phases |
