Rating & Scoring
ApPello Client Rating & Credit Scoring System accommodates transactional and portfolio models for all segments, including different types of questionnaires (objective and subjective), financial statements, financial indicators and Basel II indicators.
The scorecards and rules are easily adjustable by business users, so that the Bank is able to keep up with the ever-changing market and regulatory environment. The models can be different by product or client sub-segments. They may be versioned and test-live models can be compared (champion-challenger).
The system works as stand-alone Scoring Engine integrated with ApPello Loan Origination System or other loan origination solutions where users can see and potentially modify results. The solution can handle pre-screening, classical soring and any additional decision points. Furthermore, the Scoring engine is able to provide alternative loan offer combinations.
Key Features
  • IMPROVED EFFICIENCY IN RISK MANAGEMENT
  • HIGHLY INTEGRATABLE SOLUTION
  • MANAGE SCORECARDS HIGHLY CUSTOMISABLE WAY
  • DYNAMIC DATA MODEL
  • HANDLING COMPLEX CALCULATIONS

1 Front-End and Scoring engine

The scoring engine is highly integratable with loan origination solutions. The data from the loan origination solution or individual parameter tables are evaluated, scored, aggregated and assessed by ApPello Scoring Engine. XMLs arriving from the loan origination solution are managed by the Engine and the processed data are sent back by the same manner. Having regard to the frequent regulatory changes, in case of the expansion of the XML the system is able to handle the assigning new tags to the new variable.

As a result of the evaluation of the application, the Engine is able to provide clear answers and information of further workflow steps (acceptance, rejection, manual review, mitigation strategy: surcharge, guarantor, cover) for the Loan Origination System.

2 Dynamic data processing

The strength of the Application lies in its openness and flexibility. The Solution is capable of taking the input data necessary for the rating process from any existing systems of the bank and also from external data sources, while the final output generated as a result of the rating workflow can be used by any connected application.

The Scoring Engines contain parameterized data models, processes and rules so for a new product or a client sub-segment further questionnaire and scoring models can be created by the Bank’s experts. When it comes to modification of a logic or parameter board, it is possible to add new parameters, clone, inactivate/activate or archive the old one without vendor intervention.

The evaluation and scoring system’s calculation/evaluation logic is highly formable and able to manage several logics at the same time based on the data (flag) recorded in same transactions. In a campaign for the same product different interest rates or conditions are applied.

3 Flexible scorecard definition

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. Within the process, the users are able to parameterize several rules in parallel.

Scorecards can be defined for different client segments, for different loan products and also for different purpose for example pre-scoring, client scoring. Already existing scorecards can be copied and modified into different versions.

4 SERVES ALL SEGMENTS

The Scoring engine serves both retail and non-retail segments. The risk conditions can be separated from each other, be associated with the given segment and work independently.

The Engine supports complex calculations for non-retail and retail segment using the advanced statistical and mathematical functions 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.) and expected loss calculations.

YOU MIGHT ALSO BE INTERESTED IN THESE SOLUTIONS
LOAN ORIGINATION
ApPello Loan Origination is a process-based solution for collecting data and documents. It supports the stages of proposal, underwriting and contracting.
COLLATERAL MANAGEMENT
During the loan origination process the collateral data is handled by this module. The system allocates the collaterals on the loans with the help of the graphical modelling tool to calculate the coverage.
go top