Ingenio MicroScoring is an application for automating retail lending for low-value credits for Small and Medium Sized Enterprises. Usually, the procedure for granting these credits to legal entities requires a thorough analysis of the market the applicant is targeting and of his business’ perspective, which demands a lengthy period of time. For low-value credits (micro credits) this detailed analysis is counterproductive, given the fact that the credits can be granted based on a scoring.

Ingenio Software has developed a software application for streamlining the flow of approving/rejecting credit applications, minimizing the time needed for an application analysis and focusing on eliminating additional expenses.

MicroScoring automates the process of granting micro-credits, the business characteristics analysis being conducted based on eligibility criteria and an electronic scoring. A completely editable scorecard (criteria, score, and acceptance thresholds) is associated with each industry. The credit applications must fulfill a series of eligibility criteria and for each facility specified in the application a score is calculated based on the associated scorecard.

Based on the obtained score, the application is accepted, rejected or sent to the main unit for supplementary analysis (if the obtained score is between the two limits: accept-reject, the decision will be made manually by a user). These two thresholds, rejection and approval are managed by the application administrator and may be modified to extend or limit the human decision area. The time needed for an application analysis is significantly decreased, thus saving resources through the automation of the process.

The MicroScoring application is focused on offering a database with all relevant information on Micro Segment clients (financial data, market data, business data, guarantees etc.), in order to improve the work of analysts related to evaluating clients and determining the most important factors that influence/foresee their behavior. The application provides a system for monitoring scorecards, in order to help appreciate their efficiency, develop new ones or improve the existent ones. The application also generates reports for the management.

Benefits

• Increases productivity, both in credit-related decision-making and the whole crediting process;
• Ensures consistency for the decisional process in the crediting activity;
• Streamlines the credit-granting flow;
• Decreases the work time needed for analyzing an application and eliminates additional costs;
• Provides a system for monitoring scorecards, in order to help appreciate their efficiency, develop new ones or improve existent ones;

Using the MicroScoring application leads to important resource savings and improvements in the process of granting low-value credits for Small and Medium Sized Enterprises.