MyCreditRobo

The AdviceRobo proprietary Psychographic Credit Score:

1. Adds non-financial data to assess creditworthiness, because it is about the willingness to pay back (besides the ability);
2. Improves the quality of your credit decisioning by an objective measure;
3. Improves your business by responsibly accepting new customer segments like thin files.

Making use of the CreditRobo score in the credit decisioning process, will increase acceptance, decrease defaults and financially include.

The AdviceRobo model is psychological statistical model, which it has been developing in close cooperation with Cambridge University. The model is based on borrowers’ motivations, personality traits, values, attitudes, interests, and lifestyles.

AdviceRobo developed, tested and validated its psychographic risk scoring model based on 2 million borrowers from multiple lenders across several countries throughout Europe, Latin America and Asia.

Most important risk metric is the Gini coefficient. In credit risk it is commonly used to evaluate the performance of the model. Gini assesses the accuracy of a prediction around whether a loan applicant will repay or default.

The proven Gini of the CreditRobo Logistic regression model is up to 0.66. With this, the AdviceRobo solution is the Best-in-class thin-file risk scoring solution. With our customers we have shown lifts of up to 49% in customers’ Gini’s.

On request, we will provide other risk metrics e.g. Confusion matrix, Precision, Recall, F1 or Accuracy.

The model predicts the probability of arrears and provides an overall score between 1 and 1000. The higher the overall score, the lower the probability this person will have arrears.

On the overall score, you define your own cut off point and decide, based on your risk policies and risk appetite, what the cut off point for accept/reject is. Based on AdviceRobo experience, we can advise you on the thresholds to be used.

On top of the score, MyCreditRobo provides a more granular psychographic profile based on 7 pillars: Delay of gratification, Financial skills, Materialism, Confidence, Reasoning, Debt attitude and Social desirability. All (normalised) sub scores are also in the range 1 to 1000. Again: the higher, the better.

You receive a login for an online dashboard with (1) the overall scores; (2) the sub scores on the psychographic pillars; and, (3) statistics on the funnel throughput and score distribution.

Scores and sub scores are shown on applicant level.

More on the dashboard:

• In the funnel you can check how the applicants go through the funnel as they fill in the questionnaire. How many questionnaires were created? How many applicants really started the questionnaire? How many people did answer all questions and are actually scored?
• In the score distribution section, you can examine the distribution in the scores. You can sort ascending or descending p. column. This is what we provide:
  • The applicantID (provided by you), the version and the language of the questionnaire you use and a time stamp on the date the questionnaire was completed
  • Overall score (Psychographic Credit Score – PCS total)
  • Sub scores on 7 pillars (e.g. Gratification, Materialism). This shows a granular psychographic profile where the higher the sub score, the better
  • An alert is given in case a specific applicant went through the questionnaire at such a fast pace that it is highly unlikely he/she truly read the questions. Because the questionnaire is filled out completely, we calculate and provide the scores in the dashboard. It is good to know that these scores may not represent the creditworthiness of the applicant accurately; he may simply have randomly selected lucky answers.

The dashboard is 24/7 available with real time information and is included in the service. In every section you can easily adjust the data range you want to deep dive in. The scores are downloadable as a csv file for further analysis.

On average, people require less than five minutes to complete the online interview. Average time is 3.5 minutes. The current interview consists of 20 questions.

About 60-90%, depending on the targeted group.

A person gets a unique Customer ID and cannot fill out the same online interview twice.

The applicant can fill out the questions only once. If one quits the interview without finishing or even switching of the device, he will be redirected to the next specific question once he starts the interview again.

The AdviceRobo solution is currently operational in 10 languages: English, Spanish, Dutch, Czech, Polish, Turkish, Italian, French, Japanese and Russian. Many more to come…. Feel free to contact us if your preferred language is not available.

Privacy is AdviceRobo’s highest priority. Our product development is based on ‘privacy by design’. The psychographic credit scoring solution works with anonymized data to avoid data breaches. Please check our Privacy & Security Statement

Data protection is the top priority for AdviceRobo. MyCreditRobo is a stand-alone product to risk score new or thin-file borrowers. The solution works on anonymized customer data.

We provide full API documentation on how to implement the AdviceRobo API and JavaScript plug in in your online loan application process. Based on our experience, it takes about 4-8 hours for a skilled web developer to complete and test the technical integration. Of course, we can support if needed.

The technical quality of the Platform is measured by SIG (www.sig.eu) and AdviceRobo was granted with a Maintainability score of a solid 4,1 stars out of 5 (August 2019). The SIG approach and methodology is fact based. The approach is based on ISO IEC 25010 for good software development. Her benchmarking is certified by TÜViT ISO IEC 17025 and calibrated yearly.