Scorecard setup
Here, you can define the scoring parameters based on your organization’s credit scorecard. These parameters define the factors that can be used when scoring an application during underwriting and generating an initial decision on whether you wish to fund a loan application. The combination of the flexible definition of these parameters, along with the scoring set up on the Scoring Models page, allows you to automate the initial decision process. The Formula Definition section on the Scoring Parameters page allows you to build a mathematical expression to express the scoring parameter, test its validity, and locate specific information with the resulting scoring parameters. The system calculates scoring parameters using application data, credit bureau information, and applicant details.
Define Scorecard Set
You need to define a scorecard set before you define a scorecard.
Prerequisites
None.
Steps
Perform the following steps to define a scorecard set:
Log in to your Salesforce account.
Go to Origination Configuration > Credit Setup.
Select Scorecards.
Select New Scorecard Set.
Specify the required Scorecard Set Name.
For example, FICO Score.
In the Scorecard Set Type, select Champion.
The created scorecard set appears under the Scorecard Set list.
Open the scorecard set to add scorecards to it.
Refer to the steps below to configure a scorecard.
Prerequisites
The scorecard set for which the scorecard is to be configured must be defined.
The Use Rule based scorecardscheck box under Org Parametersis clear.
Steps
Perform the following steps to configure a scorecard:
Log in to your Salesforce account.
Go to Origination Configuration > Credit Setup.
Select Scorecards.
Select New Scorecard.
Specify the required Scorecard Name. For example, Financial Scorecard, or Personal Information scorecard.
Select the Object Type. This can be Application, Account, or Party.
Specify the Total Weight that you want to distribute over all the criteria defined in this scorecard.
For example, 50.
Select the Enabled check box to indicate whether the scorecard is currently active or not. Only active scorecards are considered for evaluation.
Select the Use Input as Score check box, if required.The Use Input as Score option enables the system to use the value input by the user and multiply it with the weight to evaluate the weighted score. This is explained through the example below. If not selected, the value input by the user is evaluated as per the defined criteria and then a score is assigned.
You cannot modify your selection of this check box at a later time.
Select Save to set up the scorecard. Refer to the next section to define scorecard and execution criteria.
In the Scorecard SelectionCriteria section, define the selection criteria on which the scorecard is selected on the given object type.
In the example provided in the preceding Rule-Based Scorecard Setup section, the scorecard is set at the Application object so all the applications that satisfy the defined criteria (Loan Amount >= 100000 orthe Interest rate <= 15%) are selected.
In the Evaluation Criteriasection, define order of the execution of the selection criteria.
If no condition is defined here, the selection criteria get executed as per AND condition.
In the example provided in the preceding Rule-Based Scorecard Setup section, selection criteria 1, 2 are executed with an OR condition.In the Scorecard Criteriasection, define the criteria on which the credit scores are calculated.
If more than one criteria are defined the final credit score value is the consolidated value of all the credit scores.
Define the details of the success action.
In the example provided in the preceding Rule-Based Scorecard Setup section, the applications that have Loan Amount between 1000 and 10,000 and the Asset Class Name contains the word unsecured, are granted a score of 10 and a weight of 2. Because there is only one Scorecard Criteria defined in this case, the final credit score value is 20.
Example of Use Input as Score
This example explains how user input is used as a score for evaluating a scorecard criterion:
Assume that borrower A has a credit score of 560 and number of years in job is 2. Whereas, borrower B has a credit score of 780 and number of years in job is 4.
If you do not select Use Input as Score
Parameter | Criteria | Score | Weight | A's value | B's value | A’s weighted score | B’s weighted score |
|---|---|---|---|---|---|---|---|
Credit score | Between 450 - 750 | 10 | 2 | 560 | 780 | 10 * 2 = 20 | 0 |
Number of years in job | > 2.8 | 5 | 1 | 2 | 4 | 00 | 5 * 1 = 5 |
Total Score | 20 | 05 |
If the criteria is met, then weighted score is score defined on the criteria multiplied by the weight.
If the criteria is not met, then the score is considered 0 and so the weighted score is 0.
Sum of all the weighted score is the total score.
If you select Use Input as Score
Parameter | Weight | A's value | B's value | A’s weighted score | B’s weighted score |
|---|---|---|---|---|---|
Credit score | 0.1 | 560 | 780 | 560 * 0.1 = 56 | 780 * 0.1 = 78 |
Number of years in job | 2 | 2 | 4 | 02 * 02 = 04 | 04 * 02 = 08 |
Total Score | 60 | 86 |
Weighted score = value specified by user * weight
In this type of scorecard, the application does not check if a criterion is met or not. The value of the selected field is multiplied by the weight to get the weight score. Sum of the weighted score is total score.