1 Front-End and Calculation engine
The ApPello Client Rating & Credit Scoring System is built from two main integrated parts, a Front-End part and a Scoring Engine. The Front-End contains all screens and processes related to data recording, the Scoring Engine is responsible for scorecards and for their maintenance. Questionnaires and scorecards can be flexibly and periodically adjusted to reflect regulatory requirements or credit policy changes. Business rules are set up in the Rule Engine of ApPello Digital Platform.
2 Dynamic input data processing
Due to the omnichannel access is provided by AppDP, the traditional data of scoring process (loan, client, financial reports) and other data from digital channels (mobile device data, GPS coordinates, biometric authentication) can be also added to the system. Both of the Front-End and Scoring Engines contain paramterized data models, processes and rules so for a new product or a client sub-segment further questionnaires and scoring models can be created by the Bank’s experts.
3 Flexible scorecard definition
The Rule Engine supports complex calculations for non-retail segment using the advanced statistical and mathematical funtions of the system. Logit transformation or PD calibration can be quickly implemented by the risk experts of the bank. The system also manages the different steps of the PD rating calculation (model PD, overruled PD, decided PD, etc.)
4 Risk management model development support
Accommodation of PD, LGD and RAROC models, calculation of life-time PD and ECL is available in the system, also there is strong support for iterative calculations and business planning. The user is able to adjust input parameters until LGD cap or RAROC target is reached. There are variable functions like risk-based pricing, cost of capital and expected loss calculations, also features such as champion-challenger, waterfall reporting, vintage analysis are enabled.