UniCredit Leasing (UCL) is a specialist company within the UniCredit Group, comprising over 2,500 professionals, and a sales network spread over 18 countries, with a multi-channel distribution capability and a balanced product mix for leasing solutions aimed at SMEs. UCL is one of the top three companies in the leasing sector in 12 countries on a European level.
"In the overall framework of credit processes from an IRB-compliance point of view, a crucial part of the challenge for UniCredit Leasing was to develop a Credit Worthiness Evaluation (CWE) tool for the assessment of leasing applications, capable of determining the risk of the contracts, and identifying the authorized deliberative body", explained Giovanni Vanellone, Head of Credit Risk Models and Tools at UniCredit Leasing. "The aims of the new electronic application processing system were primarily to support increasingly in-depth credit analysis, to ensure uniform management - a critical factor in our case where more than 50% of leasing is brokered by a network of agencies rather than banking networks - to enable automated controls, as well as obtaining a significant reduction in processing times".
"Through this and with CRIF's analytical expertise in model development we have refined the results of the automated tool, improving the discriminating power for transactions concerning counterparties with a 'medium' probability of default, supplementing the overall assessment with specific scorecards (‘equipment’, ‘heavy vehicles’ and ‘light vehicles’)”, explained Vanellone.
"As part of model development we have integrated a number of different modules to maximize geo-demographic and internal information, but the contribution of external behavioral data has also been very important. Using CRIF's information assets as well as the EURISC 2.0 credit reporting system, appropriately integrated from a statistical point of view in the development of scorecards on all types of product and different segments, we have attained highly significant levels of accuracy. A great result, which we are very pleased with”.
Above all, I'd like to stress that thanks to this tool, UniCredit Leasing is now able to make automatic decisions for around 31% of applications (out of an average of around 10,000). Considering the type of clients that UCL has (made up of sole traders, SMEs, large businesses and PA), and the average value of the contracts involved, these numbers are highly significant", concluded Vanellone.
For more information, contact: marketing@crif.com
