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Posted in Silicon, IT News – The opinion of the experts

Javier Natividad, July 17, 2023

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Bank scoring “in real-time” cuts the time it takes to grant financial products without losing security

Bank scoring article by Javier Natividad in Silicon

Javier Natividad, Commercial Director of Víntegris

In this forum, Javier Natividad, commercial director of Víntegris, explains how bank scoring saves time and security in the sector.

Although the term “bank scoring” sounds technical, the reality is that a good number of citizens have been subject to at least one throughout our lives. This technical term refers to the evaluation that banks and financial institutions carry out on our credit risk profile to approve or not the concession of the products they offer: credits, mortgages, insurance, etc.

Credit risk is the factor that must be assessed, and the entity requires to guarantee its profitability before granting a service, whether it is a natural or legal person. To accomplish this, the user is usually asked for a series of documents to analyze his profile and verify his “credit score” if he has the solvency to repay the loan that the entity makes to him within the established terms.

Gathering all the necessary documentation is a slow and laborious process. In the case of mortgages, for example, this term is frequently extended between 10 and 15 additional days to the time that the user has dedicated to gathering all the information. And it is that all these reports are requested one by one from the Public Administrations (Social Security, Tax Agency, Bank of Spain, FNMT, etc.) before being delivered to the issuing entity of the service, which increases the consumption of time, increases the risk of human error and counterfeiting and, consequently, slows down the process of contracting the product with the financial institution.

Bank Scoring, Now in Real-Time

Would it be possible to reduce that time without jeopardizing the safety and reliability of the process? The answer is yes. Fortunately, the technology already exists and allows the “credit scoring” in real-time, saving time for the applicant to the service and the financial institution that must carry out the evaluation. For the entire process to have maximum security and reliability, it must be endorsed by a qualified provider of trusted services.

Bank scoring in real-time is based on developing a software solution that automates the collection of documents for credit risk assessment. To carry it out, the user only needs to identify himself, from his mobile or tablet, through a qualified certificate to collect and deliver the requested documentation in real-time. Once this information is received, the issuing entity will immediately and risk-free prepare a credit profile with which to assess the solvency of the potential client and grant or not the service according to their level of risk.

In the case of a natural person, the credit score evaluation is carried out considering the working life (Social Security General Treasury), forms 100 and 390 (Tax Agency), and the Risk report for holders of Central de Risk Information (Bank of Spain)

Whereas, if it is a legal entity, this scoring is based on forms 200 and 390 (Tax Agency) and the Risk report for owners of the Risk Information Center (Bank of Spain).

nebulaSCORING facilita la evaluación financiera en tiempo real, agilizando y asegurando el proceso tanto para el solicitante como para el acreedor

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In addition to the time savings that this type of technology can contribute to the processes when contracting financial products. For instance, the resolution about granting a mortgage usually entails terms of ten to fifteen days on average, while that of a loan typically lasts between two days and a week.  Another additional advantage is the elimination of fraud since the information is obtained directly from the Administration in which it is stored, without the intervention of third parties. Likewise, it also improves the user experience that, on the one hand, avoids displacements and, on the other, has an intuitive interface and a faster process that helps to improve the acceptance rate, reduce the abandonment rate in the operations, and favor commitment.

Other advantages derived from this automation are focused on the ease for the financial institution of being able to create, manage, and securely store qualified digital certificates without having to install them on each device manually, have 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 agility in daily procedures and a better user experience without neglecting maximum security and digital identity protection.

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