The quality of the loans is the key performance criteria for many financial institutions and banks who spend considerable amounts of time and money to reduce the risk of default by applying rather costly and time consuming traditional credit scoring techniques.
This numerical system is created by assigning scores to various attributes associated with the applicant's creditworthiness and aims to measure the probability of the loan repayment. As such it often relies on static information such as income level, historical payment patterns and banking history.
Credit scoring based on behavioral analysis reflecting real life habits is a more robust method of measuring an applicant’s creditworthiness.
The lifestyle choices of an applicant, real time purchasing habits, and employment status combined is a better indication of a person’s ability to service his/her debt.
Veloxity’s AI driven credit scoring and income estimation solution predicts credit scores by in depth and real-time analyses of individuals’ behavioral habits and lifestyle regardless of the individuals` previous participation to a banking system.