How is Klear assessing if a borrower can repay?
Based on more than 20 years of experience in managing credit risk, we have developed our own algorithms for consumer loans and business loans. Our credit scoring models are using a wide range of data points of the borrower.
For consumer loans, we take socio demographic characteristics of the household, information about the family budget and the credit history. We use official sources of data to collect or check the information.
- We connect to the Credit Bureau managed by the Bulgarian National Bank (CCR) which is registering all consumer loans, including mortgage loans issued by banks and nonbanks.
- We also consult the National health Insurance (NOI) where we can check the salary of the applicant and the Police register (MVR) in order to check if the ID card is reported as lost or stolen.
- On top of that we cross check some information by systematically looking at the social medias data and we perform a video call with each borrower in order to check its identity.
For business loans, we use the key characteristics of the company, its financial KPIs, its credit history. The model takes also into account the scoring of the owner/manager of the company.
On top of the databases used for consumers, we access the trade register data. Our model aggregates all this information to provide a unique rating of the company applying.
