CRC Credit Bureau Introduces Delay Propensity Score

Nume Ekeghe

In an effort to mitigate risks and enhance profitability, CRC Credit Bureau Limited has collaborated with Dun & Bradstreet to develop the CRC Delay Propensity Score (CRC DPS), a scoring model that predicts the probability of borrowers, who have never been more than 90 days overdue, delaying their loan repayments within the next 30-60 days as a result of external socio-economic factors.

The score will also take into account factors such as credit history, dishonoured cheques, and financial data.

CRC in a statement noted that the model uses machine-learning algorithms to continuously refine its predictions based on new data sources. CRC Credit Bureau launched the Application Programming Interface (API) for data submission in the year 2020 to enable institutions submit information on their customers’ credit profiles daily.

 Therefore, data is used to continuously retrain the model, which assists in enhancing the predictability of the score.

During a briefing, Group Managing Director/CEO of CRC Credit Bureau Limited Dr. ‘Tunde Popoola, stated: “We’re excited to introduce the CRC Delay Propensity Score to the lending industry. By providing lenders with accurate picture of borrower risk, we’re helping to create a more stable lending environment that benefits everyone involved. It also supports the deployment of advanced technology in credit processing as the DPS can be integrated into existing loan origination and servicing systems, making it easy for lenders to incorporate the model into their existing workflows.

He added that one of the key benefits of the CRC Delay Propensity Score is that it provides lenders with accurate and objective assessment of a borrower’s creditworthiness.