AdviceRobo developed, tested and validated its psychographic risk scoring that currently , as alternative credit score, is operational across different geographies in Europe and Asia. It offers additional insights in the creditworthiness of thin file customers applying for a loan, mortgage or credit card. The solution comes with a score, a profile and a decision strategy.

Benefits psychographic credit scoring

  • Safely originate new accounts

  • Increased acceptance rates up to 30%

  • Better risk scoring in on boarding process

  • Safe and secure data flow

  • Based on academic research and real life testing

  • Easy integration in current process

  • Additional behavioural information

  • Low cost PAAS solution

  • API Connectivity and fast set up process

  • Continuous improvement of scoring

 

Case study: A European bank which offers microfinance

Goals:

  • To improve the acceptance rate with 10%
  • To keep the risk level at default rate of 30%
  • To decrease the paperwork for customers and the bank itself

Solution:

  • A back test of the psychometric scoring on the existing customer base
  • Analysis of the psychometric scoring against the customers’ behavioural data
  • Implementation of the psychometric scoring in the on boarding process
  • Analysis on the results of the implementation in terms of acceptance and risk
  • Development of risk and marketing strategies

Results:

  • Increase acceptance rate of 20%
  • Risk rate same level: default rate 30%
  • Advice on rejects of ‘bad’ customers formerly accepted
  • Advice on optimization acquisition sources

AdviceRobo is an innovative partner supporting us with their psychometric credit scoring. Our cooperation really adds value to our business. They are a great bunch of people. We are happy to team up with them and benefit from their knowledge.
— Hergen Dutrieux, co-founder Viisi