In this column, Javier Natividad, commercial director of Víntegris, explains how bank scoring saves time and provides security in the sector.
Although the term “bank scoring” sounds technical, the reality is that many of us have been subjected to it at least once in our lives. This technical term refers to the evaluation that banks and financial institutions perform on our credit risk profile to approve or deny the granting of the products they offer: loans, mortgages, insurance, etc.
Credit risk is the factor that must be assessed and that the lender requires to guarantee its profitability before granting a service, whether to an individual or a legal entity. To this end, the lender typically requests a series of documents from the applicant in order to analyze their profile and verify their credit score, that is, whether they have the solvency to repay the loan within the agreed timeframe. Gathering all the necessary documentation is a slow and laborious process. In the case of mortgages, for example, this period is usually extended by 10 to 15 days beyond the time the user has spent gathering all the information. This is because all these reports are requested individually from Public Administrations (Social Security, Tax Agency, Bank of Spain, FNMT, etc.) before being submitted to the issuing entity, which increases the time required, raises the risk of human error and falsification, and consequently slows down the process of contracting the product with the financial institution.
But is it possible to reduce that time without jeopardizing the safety and reliability of the process? The answer is yes. Fortunately, the technology already exists to perform this “bank scoring” virtually in real time, resulting in significant time savings for both the service applicant and the financial institution handling the process. For the entire process to be as secure and reliable as possible, it must be backed by a qualified and trusted service provider.
Real-time bank scoring is based on the development of a software solution that automates the collection of documents for credit risk assessment. To use it, the user simply needs to identify themselves, via their mobile phone or tablet, using a qualified certificate to collect and submit the requested documentation in real time. Once this information is received, the issuing entity will immediately and risk-free create a credit profile to evaluate the potential client’s creditworthiness and grant or deny the service based on their risk level.
If it is a natural person , the credit score assessment is carried out taking into account the employment history (General Treasury of Social Security), forms 100 and 390 (Tax Agency) and the Risk report for holders of the Central Risk Information Bureau (Bank of Spain)
Whereas, if it is a legal entity , this scoring is based on models 200 and 390 (Tax Agency) and the Risk report for holders of Central Risk Information (Bank of Spain).
nebulaSCORING facilitates real-time financial evaluation, streamlining and securing the process for both the applicant and the lender.
In addition to the time savings this type of technology can bring to the financial product application process—mortgage approval typically takes ten to fifteen days on average, while loan approval usually takes between two days and a week—other noteworthy advantages include the elimination of fraud, since the information is obtained directly from the government agency where it is stored, without third-party intervention. Furthermore, it improves the user experience by eliminating travel and providing an intuitive interface and a faster process, which helps improve the acceptance rate, reduce the dropout rate, and foster commitment.
Other advantages derived from this automation focus on the ease for the financial institution to create, manage and securely safeguard qualified digital certificates without having to manually install them on each device, having greater traceability and security, as well as total transparency about the process for the end user.
Once again, technological development contributes to greater ease and speed in daily procedures and a better user experience, without neglecting maximum security and the protection of digital identity.