What are the advantages and disadvantages of implementing credit scoring within a financial institution?THESE QUESTIONS REQUIRE YOU TO STATE WHICH OF THESE ITEMS BELONG TO ADVANTAGE OR DISADVANTAGE. (ANSWER A – ADVANTAGE / B – DISADVANTAGE) 1 Less labour costs 2 Ability to grow the loan portfolios with less resources 3 Ability to apply standardisation across the network 4 The implementation of an impersonal and distant 5 Allows use of experienced staff at the centralised level 6 High turnover of staff based on lower job satisfaction 7 Risk and return can be quantified across the portfolios 8 A measurable rejection method 9 The potential for inappropriate analysis and decision-making 10 Lower levels of investment in training of lending officers 11 Potential alienation of the
What are the advantages and disadvantages of implementing credit scoring within a financial institution?THESE QUESTIONS REQUIRE YOU TO STATE WHICH OF THESE ITEMS BELONG TO ADVANTAGE OR DISADVANTAGE. (ANSWER A – ADVANTAGE / B – DISADVANTAGE) 1 Less labour costs 2 Ability to grow the loan portfolios with less resources 3 Ability to apply standardisation across the network 4 The implementation of an impersonal and distant 5 Allows use of experienced staff at the centralised level 6 High turnover of staff based on lower job satisfaction 7 Risk and return can be quantified across the portfolios 8 A measurable rejection method 9 The potential for inappropriate analysis and decision-making 10 Lower levels of investment in training of lending officers 11 Potential alienation of the
Chapter1: Financial Statements And Business Decisions
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What are the advantages and disadvantages of implementing credit scoring within a financial institution?THESE QUESTIONS REQUIRE YOU TO STATE WHICH OF THESE ITEMS BELONG TO ADVANTAGE OR DISADVANTAGE. (ANSWER A – ADVANTAGE / B – DISADVANTAGE) 1 Less labour costs 2 Ability to grow the loan portfolios with less resources 3 Ability to apply standardisation across the network 4 The implementation of an impersonal and distant 5 Allows use of experienced staff at the centralised level 6 High turnover of staff based on lower job satisfaction 7 Risk and return can be quantified across the portfolios 8 A measurable rejection method 9 The potential for inappropriate analysis and decision-making 10 Lower levels of investment in training of lending officers 11 Potential alienation of the targeted client group 12 Losses are managed with statistically acceptable boundaries *
(ANSWER A – ADVANTAGE / B – DISADVANTAGE)
1 Less labour costs
2 Ability to grow the loan portfolios with less resources
3 Ability to apply standardisation across the network
4 The implementation of an impersonal and distant
5 Allows use of experienced staff at the centralised level
6 High turnover of staff based on lower job satisfaction
7 Risk and return can be quantified across the portfolios
8 A measurable rejection method
9 The potential for inappropriate analysis and decision-making
10 Lower levels of investment in training of lending officers
11 Potential alienation of the targeted client group
12 Losses are managed with statistically acceptable boundaries *
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