Scoring, what are we talking about?

Scoring is a technical term, but an approach that is very essential to understand how our decision support solutions work. This is the specificity of our approach in terms of combating risks and detecting profiles at risk of non-payment. Indeed, our prediction and reliability scores are essential to help with human analysis in the context of a loan or payment facility decision. What is it about? What is the link between these two concepts? Let's take a look at these two terms and their application in the fight against fraud and risks.

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Scoring, a recommendation element to help decision-making

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Scoring is the act of assigning a score based on various criteria. The grade will then be used to create a profile.

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These criteria are primarily purely statistical: age, region of residence, employment, income...

These elements contribute to an overall rating, with weights that may vary according to the aim sought.

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Scoring is defined by mathematical and statistical means, a number indicating the financial strength of a customer or supplier. It is a process that uses past experiences in the form of data to develop a statement for the future based on that data.

What is the purpose of scoring?

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In the financial world, that of fraud, the credit and risk sector, it is possible to establish a risk profile for the future customer. By doing so, it helps to grant or not grant credit.

This scoring is extremely effective in analysing solvency.

Scoring and solvency analysis

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Scoring is used in the context of payment facilities and credit in order to determine the level of risk presented by a company or an individual.

Thus, the score is then used to decide to cover the risk of payment, to determine its cost and to help in case of debt collection in order to allow compensation in the event of non-payments.

The credit report and the scoring are established via solutions specialized in valuation and corporate solvency. These same solutions that will establish a risk profile.

The importance of scoring in the world of financing

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The scoring process makes it possible to standardize solvency exams, or supporting documents. This is particularly important in online commerce or in the world of credit. (Learn more)

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When hundreds or even thousands of file reviews need to be carried out, it is essential for businesses to put in place reliable and fast decision-making processes. Meelo provides an automation solution that facilitates human analysis and makes it non-discriminatory.

Scoring offers the possibility of representing the probability with which the buyer or contractual partner will meet their financial obligations in the future. It builds trust in both parties to a contract.

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The party that grants the credit protects itself against possible unrecoverable debts. On the other hand, it can also protect the consumer from over-indebtedness. And it is the daily job of Meelo to facilitate decision-making and to secure transactions through scoring.

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