Credit Decisioning Engine
Credit & Valuation
A rules-based engine that tests facility renewals against defined eligibility criteria and routes each application to auto-approval, referral or manual review.
Rules-based eligibility
- Criteria such as minimum internal rating, delegated lending authority, covenant status, days past due and IFRS 9 stage
- Scope set by a like-for-like test that establishes which applications the rules apply to
- Every referral carries a stated reason
Points-based scorecard
- Points assigned per factor against a defined cut-off
- Methodology documented so a credit committee can see how a score is reached
- Calibration set by the bank's own credit function
Evidence and benefit
- Rules tested against the bank's own history, with separate out-of-time validation and ongoing monitoring
- Benefit model covering released capacity, portfolio velocity, rework and audit effort, with a multi-year appraisal and pass-rate sensitivity
- All inputs stated as assumptions and set by the bank
Applications that route to referral or review pass to Smart CA, which drafts the credit application.