This new powerful Risk Management tool has a scoring range of 300-900 as prescribed by the Reserve Bank of India,” said Mr Larry Howell, Chairman, CRIF High Mark.
PERFORM Consumer provides an estimate of credit worthiness based on the probability that the inquired individual will default, in the following twelve months. It sums up in a Score, what an individual’s past credit performance and current utilization predicting his future credit performance: the higher the score the more creditworthy is the applicant. The predictive power of this tool in forecasting credit risk adds value in many stages of a lending institutions relationship with its customer.
Explaining PERFORM Consumer’s salient features, Ms Kalpana Pandey, CEO&MD, CRIF High Mark said, “The product derives the scores based on the credit information using CRIF High Mark’s own Consumer Credit Bureau database, with traits unique to the Indian credit market such as Priority Sector lending. PERFORM Consumer will help organizations to improve forecasts on the risk of default and acquire an all-embracing risk forecast on individuals and compare the endemic risk estimated on the exposures held by the institution to the overall banking system.”
PERFORM Consumer provides a precise overall summary of the level of risk, based on analysis of more than 2000 characteristics available within CRIF High Mark Consumer Credit Bureau. It is monitored through an on-going validation procedure, which allows regular improvements to be made to the statistical performance of the score. A more careful evaluation of the credit risk would result in a higher attention to over-indebtedness and promote a more responsible lending approach with active control of client risk.
“Credit reporting systems are determining factors in the development of sound risk analysis models, improvement of risk assessment techniques through robust methodologies and greater coverage of information. It also helps in the promotion of “responsible credit” to lenders and borrowers and support financial institutions in the education of customers making them well informed in their credit choices,” explains Ms Pandey.
