A scorecard is a powerful statistical model that can help a business with mission-critical decision making. The modern scorecard has virtually transformed the credit-granting and collections industry in recent years. Scorecards are used to help organizations automate a multitude of important business decisions every day, some of which include: making approval/decline decisions on new applications for granting credit (they tell you who's likely to default before you authorize credit); to help guide collection efforts (they tell you which delinquent accounts are likely to self-cure, roll to deeper delinquency, or default altogether); and they're used in marketing to optimize who to send advertising mailers to (they tell you which consumers are most likely to respond); and they're used in many, many, other ways across an array of industries.
There are 2 types of scorecards supported by Lendisoft:
(1) Expert Scorecards – Are structured exactly like Machine Learning Models, but you use your business acumen and hard-earned experience to choose the variables and set the points (weights). These are also known in the industry as judgmental scoring models. You can build unlimited Expert Scoring models in Lendisoft, and use them to calculate our risk-based tools like Odds-of-Roll, Likelihood of Default, Likelihood of Collectability, and more. Expert Scores also drive our Risk Grades (A-E), which can be used to schedule email and SMS campaigns, and even control the timing around agents calling precise risk-segments within your past due accounts. Expert Scores also unlock the ability to do skill-based assignments, empowering you to assign your toughest accounts to your top collectors, etc.
(2) ML Scorecards – Are logistic regression derived models—powered by IBM SPSS, and use a “supervised machine learning” algorithm that automatically picks the most predictive variables and optimally sets the points (weights). ML models are known to be more powerful than expert scores since they are empirically derived models and machine-trained. IBM is a market leader in business analytics, and a proud partner of Lendisoft technologies.
In either case, the use of scoring models in your day-to-day operations will help you optimize your decision making and drive efficiency.
- If you intend to build Expert Scorecards, you can do so directly from the Input Scorecard menu, which is included in all 3 of our product variations.
- If you require the enhanced power of ML models, Lendisoft will build them as an outsourced service, or will teach you how to build them yourself.
Let Lendisoft build your scorecard - We use industry best-practice modeling techniques, and perform logistic regression using IBM’s market-leading SPSS statistics tool for maximum accuracy and predictive power.
Signup for our Video Series Course – “…teach a man to fish and you feed him for life!” Aimed at the non-technical business manager, this course teaches you how to build ML Scoring models for your organization using our custom Excel companion tools (included when you purchase this video series course). There’s no better way to learn than to build your own scorecard model using your own data, and for a real-world purpose within your organization.
For a quick preview, please watch this preview video:
One-on-One Training – For the ultimate learning experience, we’ll train you by building your ML scoring model together, and interactively. This includes 2 all-day sessions, followed by multiple homework and review sessions as you build your first scoring model under our guidance and tutelage. We will train you on IBM’s market-leading SPSS statistics tool for maximum accuracy and predictive power.
For more information about our scorecard development, risk management tools and training services, please contact us at (949) 888-5556.
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using Lendisoft LMS