Technological advances are central allies for financial companies to collaborate with their clients’ personal finances. What these technologies are about and why they will be cutting-edge during 2024.
Every time a person takes on debt and their economy is affected by not being able to make payments, it usually happens that the banks not only begin a collection process, but the client begins to lower their credit score. To avoid this, financial institutions have technologies available that allow them to know the solvency of their clients in depth, and what is the probability that they will become over-indebted or obtain more credit than they can pay. In this framework, the sensitivity score of SIISA, a technology company applied to the financial market, is positioned as a key tool for better placement of capital, in which banks can determine specific policies that promote financing according to the possibilities of their clients, that is, they can provide them with credit alternatives to keep their financial health stable. This solution is unique in the country, and was developed following international standards where it has already been proven that this type of service is a success when avoiding customer over-indebtedness, and making personalized offers.
Faced with inflationary contexts in which people’s purchasing power is eroded, debt continues to rise. An analysis prepared in 2023 by Focus Market determined that 4 out of 10 homes have debts with some banking entity, while 8 out of 10 keep debts with lenders, businesses, services and taxes, among others non-banking entities
To help their clients meet their financial obligations, it is important for banks to transform technologically, incorporating solutions that collaborate with the sensitivity of the portfolios, making the operation of the business more efficient. By implementing technologies such as sensitivity scoring, financial companies can act prudently and not push their clients into default, or on the contrary, if they have a greater payment capacity, offer them personalized financial products according to their needs. . The objective is to prevent people from assuming a new debt that is above what they can pay, or to facilitate the acquisition of new products in a responsible manner according to their current credit status, based on a statistical model that evaluates their ability to pay. pay.
The sensitivity score is unique because there is no equivalent tool that allows analyzing the sensitivity of clients according to their financial health. This development makes it possible to measure the probability that a person who has their debts up to date will become delinquent if their debt increases by a certain percentage. A typical example that illustrates this is the increase in debt that arises from expanding the limits of a credit card.
From the implementation of the sensitivity score, banks and financial companies of all types can almost immediately establish a clear, informed and safe policy for credit takers.
Another advantage of implementing this technology solution is linked to efficiency in internal processes. All over the world, the platforms that contain sensitivity scores are specially designed so that the risk areas of banks and all types of financial entities can manage them independently of the systems areas.
The sensitivity score can be incorporated into the set of decision policies, that is, assignments of new credits, administration of existing credits and increases in limits for credit renewal. This proposal allows the best way to automate decision making, with flexibility and speed.
Technological transformation is already commonplace in a context in which financial companies seek to adapt and grow. Banks, as important players in the formal economy, today have the possibility of innovating by incorporating cutting-edge technologies that allow them to more efficiently manage their clients and their capital. It is only a matter of time before those who are pioneers encourage the entire ecosystem to transform.
Development and Research Coordinator at SIISA
Source: Ambito
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