The Canadian Imperial Bank of Commerce is using scorecard technology to analyze credit risk for its more than nine million customers.
The North American financial institution has rolled out SAS Credit Scoring to produce credit risk scorecards, as well as perform analytics on its retail portfolio.
“We are currently using the credit scoring solution to aid in the development of both application and behavioural scorecards for our retail portfolio,” said Sanjiv Talwar, vice-president of retail risk management with the CIBC.
Banks use selected information about an applicant – such as how much money they earn or how long they’ve been working – in a scorecard to come up with a probability of default.
Traditionally it took banks between four to six months to develop a scorecard, but now scorecards can be produced as quickly as two weeks to a month-and- a-half.