Scoring Manager: Elevate scores, streamline decision-making process

With the evolution of digital technology, certain processes such as lending require the use of statistical methods to assess the reliability and creditworthiness of an individual or company. One of these processes is credit scoring, and Mia-FinTech just released the Scoring Manager, an application to simplify and customize the credit scoring process.

What is credit scoring?

In particular, credit scoring is the automated system adopted by banks and financial institutions to evaluate loan applications. The scoring relies on automated systems that apply statistical methods or models to assess credit risk, and the results are presented in the form of synthetic judgments, numerical indicators, or scores to provide a representation of the risk or reliability profile.

Mia-FinTech’s Scoring Manager

The initial phase of the scoring process involves acquiring a vast amount of preliminary data from various databases. These identifying data can be of various types, including economic activities, asset information, demographic data, gender, age, and more. Subsequently, through profiling, a computational system, coherent, fast, and accurate in analyzing a series of information, generates a risk profile score. Once this score is obtained, it is possible to proceed with an ‘automatic’ decision and the acceptance or rejection of the request based on the risk profile, collected data, and predefined criteria. These criteria determine whether the output of the process is deemed positive or negative.

To simplify the construction of a scoring process, Mia-FinTech has developed the Scoring Manager application, which allows customization of the scoring process and integration with multiple external services.

Mia-FinTech’s Scoring Manager is a comprehensive end-to-end solution that enables the orchestration of a customized scoring workflow through a single platform. This allows the combination of one or more scores provided through the integration of external scoring services offered by various players.

Furthermore, with the Adaptive Approval service, it is possible to define customized rules for automating the approval or rejection of requests. This allows the adaptation of the decision-making process to specific business needs, ensuring agile and targeted control.

Due to its significant flexibility and the ability to consolidate diverse scores obtained from various players, the Scoring Manager can be used not only in the context of Credit Scoring but in all areas requiring an evaluation workflow that provides an output in the form of scoring.

With the aim of streamlining the scoring process, the Scoring Manager provides tools such as a back-office application and dashboards for process monitoring. The back-office is a unified solution that manages all scoring processes in one location, making it easy to monitor their status, regardless of the provider. Additionally, dashboards can be customized to adapt to specific business needs, enabling detailed monitoring of various indicators (KPIs) and processes provided by each individual supplier.

The Scoring Manager, like other applications created by Mia-FinTech such as the Payment Integration Hub and the Identification Manager, leverages a flexible architecture that allows the addition of new microservices without significant impacts on the entire system. It also provides templates with custom interfaces that enable the rapid integration of new providers and the agile modification of the scoring workflow, adding or reworking the established process.

Smart Lending

The Scoring process can be part of the broader Smart Lending framework. Each component of the smart lending workflow is autonomous, allowing the final flow to be composable and easily customizable.

Smart Lending is a digital lending process based on new, reliable, and more accurate data. It is fast, easy, and efficient for banks. The Smart Lending process is divided into four steps:

• Request for a quote/quotation;
• Digital Onboarding, the process of integrating new users into a digital system or platform, which occurs through a series of online steps and interactions. It enables identity identification and certification;
• Credit scoring;
• Closure and signing of documents for loan approval.

Benefits of Credit Scoring

After presenting what Credit Scoring is and the problems it solves, in this section, we will explore some of its most significant advantages:

• Composable identification flow: Allows the creation of customized scoring reports tailored to business needs.
• Ease of integration and replacement of scoring providers: With the Application Service Adapter, it is possible to expedite the integration of new providers.
• Smoother debugging: The Scoring Manager provides a unified data schema with information extracted from various scoring services and external providers, simplifying the troubleshooting process.
• Adaptive Approval: Enables the definition of customized rules to automate the approval or rejection of requests, adapting the process to business needs.

Conclusion

The Scoring Manager is an end-to-end solution that allows orchestration of a customized scoring workflow; it provides flexibility, customization, and rapid adoption and integration.

Thanks to the work carried out by the Mia-FinTech team, the Scoring Manager is now available on the Mia-Platform Marketplace alongside the Payment Integration Hub and the Identification Manager. Contact us to discover more information and stay updated on product developments!