• FINTECH which has used technology to bring lenders and borrowers together rather

than through intermediation will mean that credit scoring will become important
again.

• Character
• Moral fibre of the borrower
• Purpose of the loan
• Truthful in response to questions
• Capacity
• The legal capacity to borrow money
• Cash
• The borrower has the ability to generate cash to repay the loan. For a retail
borrower, this mean income, For a business, this means cashflow (not profits).
• Cash should not be subordinate to collateral.
• For business, the following would be as a base set of ratios:

• The collection of data for the applicant that will be used in a regression analysis
• The data sample could be up to 50 explanatory variables which have binary values:
good/bad
• Data validation and cleansing
• Data segmentation
• Development sample and validation sample
• Regression analysis
• Conclusions