Credit Assessment Insights
Beyond Income: Why Volatility Score Is the Future of Credit Risk Analysis
For years, lenders have relied on income statements to judge repayment capacity. Yet defaults persist—even among borrowers with stable, high salaries. Income shows earning power, not financial discipline. The real indicator of repayment reliability is cash-flow stability, not static income data. This is where the Volatility Score transforms credit assessment. It provides a sharper, data-driven…
Integrating Credit Scoring with Credit Assessment: A Complete Guide for Lenders
Introduction Ever wondered how Amazon always seems to suggest exactly what you need? Imagine your lending decision process working the same way – fast, data‑driven, and highly accurate. For NBFCs, DSAs, and auditors, integrating credit scoring with credit assessment is no longer just an idea — it’s today’s competitive edge. 💡 For a complete framework…
Understanding the Differences: Credit Assessment and Credit Scoring Explained Simply
If you think credit assessment and credit scoring mean the same thing, think again. These are two distinct but complementary steps that lenders, NBFCs, and auditors use to evaluate credit risk. Understanding their differences can help finance professionals make better lending decisions. What is Credit Assessment? Credit assessment is the process lenders and financial institutions…
How to Conduct a Credit Assessment Using Bank Statements
Imagine you have to decide as a lender whether to approve a loan by flipping through pages—not of a credit report—but bank statements. Sounds old school? Well, it’s actually the secret sauce behind credit assessment for smarter lending decisions in today’s fintech world. Let’s dive into how these financial chronicles reveal creditworthiness beyond simple numbers.…