01 july 2021
On June 16, Deloitte held a free, open webinar, moderated by Risk Management Department experts. The webinar was on the topic: "Pricing of Loan Products and Scoring Models as an Element of Risk and Profitability Management for the Bank's Retail Products."
The speakers talked about two fundamental directions for the development and efficiency of the retail business, namely: the pricing of loan products and the scoring model as an element of risk management and profitability of the Bank's retail products.
∙ In order to disclose the issue of pricing, the principles and approaches to determining the cost of loan products were considered, the key parameters of the pricing model that affect the final cost of the loan were touched upon. Methods of finding a break-even point, the depth of the required history for the calculation and the role of departments, as well as approaches to monitoring the net interest margin within the product life cycle are considered.
∙ Within the framework of the question on the scoring model, the following directions are considered in detail: types of models and methods of construction, advantages, disadvantages of the main methods; ways to enhance the predictive ability of the model, stages of building a scoring model and the most common mistakes; validation of the scoring model with a discussion of how to find out the most reliable quality of the model after its application in life; the approach of establishing the optimal cut off point using the example of an application map, etc.
Saule Medetova, Director, Risk Advisory, Deloitte Kazakhstan
Kenesary Kassymov, Manager, Risk Advisory, Deloitte Kazakhstan
Konstantin Yakovenko, Manager, Risk Advisory Deloitte Ukraine
Svetlana Budova, Assistant Manager, Risk Advisory, Deloitte Ukraine