The goal of any financial institution is quick loan approvals, which leads to happy customers. How can FINPACK help with this process? Consider FINPACK’s Credit Decision Scorecard, a customizable Credit Analysis tool, to aid in this process. The scorecard is tailor-made for your lending use to fast track the review and credit decision-making process for smaller, less complicated loan requests. The scorecard template is developed by your team to meet the underwriting, analysis, and credit culture standards of your financial organization.
Components of the Credit Decision Scorecard
There are two straightforward components to the Credit Decision Scorecard analysis. These include:
- Essential criteria – identify the key questions related to analyzing the credit request. These criteria define the requirements needed for automatic approval of the loan request. Simple yes/no answers are used for this evaluation.
- Customer data – include key customer and loan data points to analyze. This customer data is evaluated against the minimum approval levels defined by your institution. These customer data points are defined by your institution but may include things like credit score and loan amount versus collateral value. Information can also be linked from other FINPACK Credit Analysis tools, like tax forms or balance sheets.
If needed the Credit Decision Scorecard also provides flexibility and the availability to override automatic approvals or rejections.
How to use
The FINPACK Credit Decision Scorecard is a tool that is designed for smaller, more straightforward loan requests received. These types of loan requests can be fast-tracked to approval since limited underwriting is needed. This tool can help service lending needs faster, ensuring happy customers, and more productive lenders.
The criteria and thresholds are set by your credit team, so the tool can be implemented in a way that best fits the credit culture of your financial institution. Consider the ways FINPACK’s Credit Decision Scorecard can enhance the credit analysis procedures of your credit team. Several models can be built, if needed, for use at your institution. Building Credit Decision Scorecards is accessible in FINPACK Options, but feel free to reach out to FINPACK Tech Support to assist with the process as well.
Pauline Van Nurden is currently the Associate Director for the FINPACK Team. She has been with the team since 2017 as an Economist.
Prior to joining the FINPACK Team, she worked as a lender. This provides her valuable industry experience and knowledge in her work with FINPACK. Pauline holds a Master’s Degree in Agricultural Education and Bachelor’s Degree in Applied Economics, both from the University of Minnesota.