September 2008

When conducting a creditworthiness check for a credit applicant, you as a credit provider will always look at credit bureau information (do a Credit Check) as part of your evaluation process to find out what the associated credit risk per applicant is for a specific loan product.

Each loan product will have different requirements or ‘bureau rules’ that need to be taken into account when looking at the credit bureau information.

Your ‘decline rules’ or ‘bureau rules set’ for a specific loan product might include some of the following rules:

• CPA Data more than 3 accounts with worst arrears > 6 months
• Credit Score (CompuScore) > 400
• Two or more judgements
• Admin order
• Identity Theft/Fraud
• Debt Counselling Notice
• Dispute Logged
• NLR Data Adverse Last 12 months
• CompuScan Collection Data > 1

As a credit report provides you with a large amount of credit information on an individual credit applicant, the manual process of filtering through this credit information to check the above rules can be a tedious and time-consuming task. This affects your bottom line as you are not able to spend the most of your time on the credit worthy clients due to the time spent on the manual evaluation process.

CompuScan has developed a smart rules based decision matrix, called Codix, already integrated into our Credit Check Application (i.e. CompuScan’s Credit Check). This eliminates the time-consuming manual task.

Once Codix is set-up into your Credit Check Application it automates your credit decisions by:

• Taking your specific ‘bureau rules set’ for each loan product into account
• Automatically filtering through all the credit bureau information

• The credit data that it uses for mapping includes:

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        • CompuScan Micro Lending Credit Information
        • NLR data
        • CPA data
        • SAFPS fraud data
        • Judgement data

• Displaying a concise summary as part of your credit report that provides you with the recommended actions for each loan product in your loan portfolio.

Please see an example below of a screenshot of Codix and the recommended actions and ‘reasons for decline’ per loan product that will be part of your Credit Report:

The loan products that are approved are marked with a green tick and the loan products that are not approved for the specific applicant are marked with a red cross. It also indicates the reasons for the decline.

After you have looked at the risk recommendations generated by Codix you can continue with your affordability study based on the rest of your credit policy and business rules.

We at CompuScan will monitor your chosen rules sets on a continual basis and give advice where we think we can improve to automate your credit decisions. You can also choose to incorporate credit scoring models like CompuScore into Codix for more predictable results. We will help you to decide what the best option is for your business.

More reasons why you should consider integrating Codix into your Credit Check Application?

• Significant time and cost savings, both of which can also increase competitiveness.
•  Codix leads to reduced staffing requirements associated with performing credit reference checks.
• Your credit decisions will be more consistent by adhering to specific bureau rules per loan product.
• Codix speeds the approval process, allowing your business representatives to provide even greater levels of customer service.
• A customer can perform a credit check from any linked branch and it can be scored, processed and underwritten.
• Codix improves the consistency, relevancy, speed and precision of customer decisions, deriving more value from every customer interaction.
• Your credit decisions can be customised to meet specific product needs.
• Codix is NCA compliant.

Time is money! By choosing Codix to eliminate time-consuming manual tasks and automating your credit risk decisions the benefits are obvious!