By Rosemary Iwunze

CRC Credit Bureau Limited in partnership with Dun & Bradstreet has developed a new scoring model known as CRC Delay Propensity Score (CRC DPS).

According to CRC, its Delay Propensity Score is a scoring model that predicts the likelihood of a borrower delaying their loan repayments within the next 30-60 days due to socio-economic factors. The scoring model looks at borrowers who typically have never crossed the ninety (90) days past due in their repayments. These factors may include the borrower’s credit history, number of dishonored cheques, and other financial information.

The CRC DPS model was developed in partnership with Dun & Bradstreet analyzing large datasets of borrower behavior to identify the most significant predictors of delay.

The firm noted that the model uses machine learning algorithms to continuously refine its predictions based on new data sources.

It will be recalled that CRC Credit Bureau launched the Application Programming Interface (API) for data submission in the year 2020 to enable institutions submit information on their customers’ credit profiles daily.

Therefore, data is used to continuously retrain the model, which assists in enhancing the predictability of the score.

One of the key benefits of the CRC Delay Propensity Score is that it provides lenders with a more accurate and objective assessment of a borrower’s creditworthiness. This allows lenders to enhance their credit review process, make better informed decisions, adopt risk-based pricing in structuring loan terms.

Moreover, the CRC DPS can help lenders reduce the effects associated with delay in repayments. By identifying borrowers who may delay payment, lenders can take proactive measures to mitigate the risk of loss by offering more flexible payment options, setting up automated reminders, or even restructuring the loan terms to better suit the borrower’s financial situation.

Speaking on the development, Group Managing Director/CEO at CRC Credit Bureau Limited, Mr. ‘Tunde Popoola stated: “We are excited to introduce the CRC Delay Propensity Score to the lending industry. By providing lenders with a more accurate picture of borrower risk, we’re helping to create a more stable lending environment that benefits everyone involved. It also supports the deployment of advanced technology in credit processing as the DPS can be integrated into existing loan origination and servicing systems, making it easy for lenders to incorporate the model into their existing workflows.

“The introduction of the CRC DPS is a significant step forward in the lending industry, and it’s expected to have a positive impact on the experience for both lenders and borrowers. With the CRC DPS, lenders can make more informed lending decisions and provide borrowers with greater access to credit.”