On June 21-22, 2019, at Hotel Phnom Penh, Credit Bureau Cambodia (CBC), Association of Banks in Cambodia (ABC), Cambodia Microfinance Association (CMA), and Sprint Milestones co-organized the workshop on “Credit Scoring” with participation of more than 250 participants from all financial institutions who are the members of both associations.
The main objective of this workshop was to share the overview of the credit scoring model best practice, which has been adopted widely and successfully in other countries for such of loans like credit cards, consumer loans, and mortgage loans. Credit scoring system can help make decisions faster, more accurately, and more impartially than individual judgment when it is properly designed.
In Cambodia’s credit market, some financial institutions have developed their own scorecard and able to integrate with their core banking systems. However, there are many financial institutions that may not have the Advanced Scorecards – Statistical or Machine Learning Models, meaning that they use their judgement to identify the key information in evaluating customers.
To overcome this challenge, CBC has on-boarded strategic partnership with one of the leading analytics international firms, Sprint Milestone, whose leadership team have in-depth experience and expertise in advanced scorecards and scoring development in many countries in Asia Pacific.
Credit scoring is a modern tool applied in the decisioning processes across the entire lifecycle of credit management for quick, fair, and completely impartial decisions. It uses a data driven approach and statistical techniques to develop so-called risk scorecards to assess the creditworthiness of an individual. It allows lender institutions to systematically deepen your penetration of customer pools, improve profitability of your portfolios, and minimize your potential loss.