Background In consumer lending, portfolio managers typically have access to a scorecard used to forecast default probability for each applicant. Scorecards are built using historical data on loan accounts and their respective performance data. The inputs into the scorecard include financial, demographic and other personal information about each applicant. The output of the scorecard is a real-v...

The socio-technical theory is concerned with human well-being; it is democratic, humanistic and provides both freedom and knowledge to those who are part of it. Balanced scorecard is an approach that assesses whether the organization is meeting its objectives in terms of vision and strategy. It measures four perspectives: financial, customer, internal business processes and innovation & learnin...

How well does Prizma’s poverty scorecard identify poor clients? The scorecard applies 0/1 weights to seven simple and inexpensive-to-collect indicators to give a score from 0 (most likely poor) to 9 (least likely poor). The scorecard has good power, not only for ranking clients by relative poverty but also for identifying the likelihood that a client is poor by an absolute standard. While pover...

The Balanced Scorecard (BSC) is a very powerful and successful strategic performance management tool. This management white paper describes a BSC in simple terms. The paper outlines the four perspectives of a Balanced Scorecard and explains the importance of Strategy Maps. It shows how many organisations use the Balanced Scorecard today and describes the key benefits of a scorecard implementati...

Credit scoring is one of the most successful applications in banking and finance. However, most studies do not explain the whole process of scorecard development, probably due to the difficulty in obtaining credit scoring data. This study addresses some of the gaps that are present in the existing literature in that it explains in detail the processes, as performed in practice, of scorecard dev...