Absolyut Bank summed up the results of "pilot" on psychoscoring

2020

Results of "pilot" on psychoscoring

The absolute the Bank received the first results of "pilot" on use of psychoscoring for assessment of borrowers in a car loans segment. This TAdviser became known on July 16, 2020. System testing of Worthy Credit capable to analyze a set of personal competences of the person, psychology of a consumer debt and to estimate solvency on character of the borrower, began in March, 2020. Applying psychometrics, and, based on non-financial risk factors which, in traditional scoring models are not considered, it is possible to identify more creditworthy clients, to predict delays and non-payments.

Absolyut Bank summed up the results of "pilot" on psikhoskorin

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In three months about eight thousand people which submitted applications for a car loan passed the simple online test developed by the Israeli financial technical-startup of Innovative Assessments. Primary analysis showed that psychoscoring is most effective for assessment of clients without credit history. According to specialists of Bank, "pilot" received good percent of conversion: the share of completely completed tests makes about 34%. Analysts also noticed that usually testing was not finished by clients with signs of fraud – they answered questions only in 20% of cases. And here borrowers with bad credit history or without it for increase in chances of success, took tests in 41% of cases,

Tests are very simple, are similar to the behavioural questionnaire where there are no "correct" or "wrong" answers. The essence is in understanding whether the person is ready to pay for the credit or he knows that he will not be able to pay, but consciously deceives bank. Using psychoscoring it is possible to give to people without credit history access to financial products on those conditions which they deserve.

In 3-4 months, having estimated credit behavior of participants of testing, specialists will be able to define the importance of points of psychoscoring in the general model of scoring, to give them a quantitative assessment and to make the decision on psychoscoring system implementation as additional analytical tool on a permanent basis. Psychoscoring is an additional, but not the only level of analytics, specified in bank.^[1].

Start of pilot testing of Worthy Credit in a car loans segment

On March 18, 2020 TAdviser knew that Absolyut Bank started in a segment of issue of car loans psychoscoring system testing for solvency assessment on the basis of character of the borrower.

The Worthy Credit online platform is developed by the Israeli financial technical-startup of Innovative Assessments – it measures a key set of the personal competences of the person connected with psychology of a consumer debt.

Creators of the platform are convinced that potential consumers should be estimated not only on their credit stories, but also on character. Applying psychometrics, on a basis non-financial risk factors which are not considered in traditional scoring models, it is possible to identify more responsible clients, to predict delays and non-payments and also to give to reliable people without credit history access to financial products and services.

"Pilot" of Worthy Credit, the started Absolute Bank, will last about three months. It is supposed that during this time the simple online test there will pass about 8 thousand people who will submit applications for a car loan. After the deep analysis of results of testing and the existing client credit stories in bank will make the decision on psychoscoring system implementation as additional analytical tool on a permanent basis.

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