Innovative System For Measuring and Managing Credit Risk
CUFA Lending Analytics (CLA) is a ‘big data’ software solution that employs sophisticated but straightforward and well-accepted statistical techniques to quantify the risks and project the likely losses in a consumer loan portfolio.
CLA’s computations are based on the detailed recent history of a loan portfolio, including its unique record of write-offs and post-write-off recoveries. Up to 25 months of this information is extracted directly from the lender’s core banking system, and the resulting database is updated monthly so that recent experience is reflected in CLA’s outputs.
The CLA dataset for each lender consists of a comprehensive set of data fields for every loan, as of each month-end for the period maintained.
For a large portfolio, CLA computations can involve sifting through and discerning trends in tens of millions of historical data elements.
The accuracy of the resulting analysis would be, as a practical matter, impossible to match by performing a manual review of individual loan files.