Expert system - CLARA (Cash-flow linked Agriculture Risk Assessment tool) will be used to calculate the analytical indicators, allowing assessing the risks of lending to agricultural borrowers using accurate modeling of the projected cash flow of farms.
CLARA (Cash-flow linked Agriculture Risk Assessment tool) is a new service designed for quick and effective assessment of production risks in agriculture. The service helps to make predictive calculations for farms based on flow charts for the production of various agricultural products. Routings containing the necessary information and instructions for the production of various agricultural products will be stored in the service database, which will have a weekly update.
This tool is available in the web interface of the CIBT Online system.
is a document which contains information related to a specific subject (individual or company), there are basically two sections; the first section contains subject’s information (address, contacts, INN, document ID…), the second section contains the “credit history”, so detailed information about the way in which he handles his/her debts.
This report also include a credit history summary such as synthetic information regarding his/her Credit History (number and type of accounts, number of Financial Institutes with which relationships are being held , total exposure, total overdue, total day past due…)
In CIBT online system, are available three type of reports having different set of information and different cost:
Basic – it considers current subject’s information (without historical information), a summary of the credit history.
Standard – it considers current and historical subject’s information, detailed credit history (summary and historical payments, contains links (shareholders and family members link).
Advanced – it considers details subject’s information (including historical details), full credit history (summary and historical payments), links (shareholders and family), score.
Please note; our data base, so our credit report is online updated, it means that when a Borrower asks for a loan to a specific Financial Institute those information are immediately stored in the data base, so are immediately available in our credit report.
What is a credit history?
CIBT database was growing a lot during last years and now there are around two millions of subjects and the percentage of shared portfolio is more than 35%. CIBT has recently introduced two instruments that allow Financial Institutes to monitor their client’s portfolio. Let us provide you more information about what the monitoring tools are using a “story”:
If we ask to a lender “Are you able to know what happens to your clients’ credit behavior after the credit is granted?” the answer will be most probably “Yes, I look at the performance of my clients over time”. But if you ask them “Are you able to know what happens to your clients’ credit behavior with all lenders (he has got or will have a relationship with) after the credit is granted from you?”, then the answer will be a clear “No I’m not able to know anything about what happens with others after I grant credit”.
Monitoring instruments allow Financial Institutions to know what happens to their clients’ credit behavior with all other lenders (he has got or will have a relationship with) after the credit is granted from the specific Financial Institution.
We would like to present two instruments, which, thanks to the ability to monitor portfolio risk at CB system level, will allow credit and business managers to have a clearer idea of the type of risk they are facing (both in positive and negative gradients).
The first one is Portfolio Advisor, an online function which allows CB users to be informed about changes in the profile of their customers, thanks to an event driven logic.
In fact in order to be signaled, the change has to occur after the initial date (starting or request) of at least one contract between a subject and the financial institution which will then be notified.
With Portfolio Advisor, users will obtain the list of all subjects that have a request or a contract with a determined financial institution, and whose contracts with other institutions faced a significant change.
The second module is Portfolio Explorer, which is a batch module that allows institutions to monitor the behavior of their clients over time, in order to have a clearer understanding of their portfolio risk trends.
This monitoring should occur on demand or with a specific time frame, usually managed on a given frequency (monthly, quarterly and so on so forth).
For instance, lending institutes in the most developed credit environments use monitoring instruments on a monthly basis, as they utilize them for purposes other than risk management as well.
The most important functions of the instrument are the following:
1. To control the overall situation of risk of a portfolio;
2. To create clusters of clients with different level of risk;
3. To activate strategies according to the cluster/client risk level;
4. To have a tool to prioritize the actions;
5. To improve the overall portfolio management thanks to a cluster oriented approach: this will allow not only better risk management but also additional business opportunity for low risk clusters/clients
6. To refresh the internal data base regarding subject’s data
it is a report customized for each specific Financial Institute which contains information regarding the portfolio of the specific Financial Institute, general information regarding the overall situation on the Tajikistan market (based on CIBT’s data) and information on the shared portfolio (subjects having contract with the specific Financial Institute and contracts with one or even more Financial Institutes at the same time) of the specific Financial Institute.
Analytical Reports can be provided monthly or upon request.
CREDIT SCORING is a statistical methodology used to predict future events based on the past experience.
It predicts the likelihood a particular event will occur in a given period of time.
The assumption is that the future, at least in the medium term, will be similar to the past.
– The aim of the score is maximize the “separation” between good and bad accounts, in this way the credit risk manager could focus and dedicate his/her efforts only to clients which are located in the grey area (not good and not bad).
CIBT has been active since 2012. The first scoring solution provided to the market was the GLocal score embedded in the implementation and has supported the credit bureau growth until June 2017. At the beginning of 2017 CIBT had reached the size of about 2 mln plus records with a consistent history, therefore CRIF (CRIF will be clickable) felt it was the right time to move ahead with the transition from GLocal Score to a validated and localized one (Advanced Scoring). The advanced scoring model provides Tajik Financial Institutes with a new tool to help effectively manage their portfolios. The Credit Bureau Score developed by CRIF is the first scoring system exclusively developed using Tajik credit bureau data.
- - Worldwide data availability: all countries in the world are potentially of interest to all markets, and so this means complete availability
- -Market needs: what customers are really looking for from business information and what is really helpful
- - Strategic information: focus on elements, which really help customers in their decisions. It is not a matter of data quantity but data quality
- - Country specificity: countries can have different rules in terms of data availability and updating. Not all information can be accessed online, but for critical areas offline delivery guarantees that high data quality standards are always maintained
- - Risk level: to assess a risk level, information independent data could give the right perspective. Internal information only, aren't enough to take a decision safely