NBKI and FICO: Industrial scoring of SME

Main articles:

• Credit scoring
• Small business of Russia

2020: The second version of industrial scoring with reduced quantity of the fields obligatory for transfer to NBKI

On August 5, 2020 it became known that the National Bureau of Credit Histories (NBCH) and FICO company start implementation in banking systems of decision making about issuance of credits to the enterprises of small and medium business of the second version of industrial scoring of SME.

Industrial scoring of SME

As it was explained, industrial scoring of SME assumes complex risk assessment of this type of borrowers as on the basis of comparison of the credit information from NBKI, and taking into account the financial performance known to the creditor. At the same time for 3 years which passed from the moment of implementation of the first version of scoring, the base of business loans in NBKI increased more than twice – from 4.4 million units in June, 2017 to 10.0 million units in June, 2020. Such data storage about borrowers – legal entities, individual entrepreneurs and also the individuals connected with SME allowed NBKI and FICO to improve this scoring model, having offered participants its upgraded version.

In comparison with the initial version of scoring of SME, its upgraded version - more convenient, also simplifies work to users. Including, due to decrease in quantity of the fields obligatory for transfer to NBKI for carrying out necessary calculations. At the same time upgraded version of scoring can be applicable for the bigger number of subjects of SME due to increase in its efficiency and growth of HitRate.

Authors of model saved a scale and provided succession of estimates of the initial version of scoring that will allow its numerous users to upgrade to upgraded version without effort.

It is important that industrial scoring of SME can be applied at all stages of interaction of creditors with representatives of SME. Both in decision making process about issuance of credit to the SME enterprise, and in the analysis of the borrower – the legal entity which already have the operating credit or a credit line. Upgraded version of scoring is effective also at determination of strategy of return of the debtor to the debt service schedule. Besides, it can be used during the crediting and segmentation of business partners, for example, regarding risk assessment of the partner at tender purchases or competitive procedures of the choice of the supplier of goods or services. Alexey Volkov, the marketing director of NBKI explained

Own customer bases of the enterprises of SME of banks are, as a rule, not really big, and customer behavior history – is very short. Therefore, according to large players of the market, use of industrial scoring of SME improves quality and stability of bank scoring models in this segment of crediting. Elena Koneva, the director of scorings of FICO told

2017: The first version of scoring

The first version of scoring was offered the market in 2017 and showed demand at creditors of forecast instruments of segmentation of risk of subjects of small and medium business (SME). At the same time this scoring model considers features of functioning of SME: dependence on the connected subjects, credit history and financial performance, type and amount of business. The model is adapted to the Russian conditions and is applicable at all stages of work with the borrower.