Knowing whether or not to commit to the time and expense of a full model rebuild challenges many lenders.  An easy solution to this problem can be found in FastTrack Modeling through the creation of investigative scoring models.

Creating Investigative Scoring Models

DMS FastTrack Modeling helps you determine the expected lift of a new credit model at a fraction of the time and cost it would take to build and test it. FastTrack Modeling uses archived credit data and DMS attributes to create an investigative scoring model. In as little as one week, this unique process can show you whether your existing credit models can be improved. The FastTrack Modeling process provides an efficient method of performing an initial analysis on the lift expected from a new model and lets you see the value of the model before committing to the full cost of building it. If the lift isn’t sufficient, you can direct your time and money elsewhere.

How Does It Work?

Using historical credit data, a core set of DMS attributes, and performance data, FastTrack Modeling uses a proprietary automated modeling tool to create a “quick and dirty” challenger model to your existing scoring model. The two models are compared using measures such as C values, KS, and gains tables to estimate the lift of a full modeling effort.  C value and KS are two commonly used statistics that summarize how effective a model is at rank ordering a population of applicants from low to high risk. If the lift is sufficient, DMS can complete the full modeling process for you that includes these steps:

• An extensive data cleaning
• A robust compliance review
• Inclusion of all attributes
• A detailed validation
• Implementation of the new model

DMS leverages the work done in the FastTrack Modeling process to help reduce your overall project cost.