CREDIT SCORING PROCESSES FROM A KNOWLEDGE MANAGEMENT PERSPECTIVE

Abstract

The success of credit/lending decisions is basically influenced by two factors: the quality of basic data (completeness, accuracy, credibility) and the quality of the decision making model (for individual deals, the decision making process). While, however, the former is a rather technical criterion, the latter is far more complex; still, to a great extent it depends on the knowledge and experience of the business experts shaping and implementing the decision making process. This work intends to examine the relationship between widely used credit scoring models and the expansion and/or preservation of the knowledge wealth of the organization.