Overview

FinScore(TM) provides a better way to assess credit risk associated with an upcoming financial transaction. A method that would take into consideration the current situation more than the past events. Typically, in most credit risk modelling, credit score or past credit history is given a lot of emphasis. Our view is that the entire Credit Reporting model is BROKEN. It has a place in modelling financial risk… but the amount of emphasis laid on credit score is highly over-rated. Instead of trying to “predict” how an individuals’ financial performance will turn out to be (over time), our view is to analyse the facts as they stand today and assess them in relation to a benchmark or a set of parameterts that matter TODAY. For instance, you're a property manager who needs to know if Sally can afford to pay $750/week in rent for the next 52 weeks. A credit report will do nothing in terms of answering that question for you. A bunch of payslips – yes, as long as they aren’t forged. Bank statements – sure, as long as they are genuine and you can keep away from prejudice toward the tenant. But what if there was a way (driven by mathematics) to assign a probability score, based on Sally’s income, expenses and ratio of surplus/deficits at the end of each month, compared with the proposed outgoing obligation, matched against existing bills and expenses – all expressed in a single score or even better, an answer like “Yes”,”No”, “Probably” or “Doubtful”. So you punch in the question: "Can Sally afford $750/wk in rent?" FinScore(TM) gives the answer: Yes or No... That's FinScore(TM)A single, simple, numeric score that is designed to express the statistical probability of a person’s financial position relative to a benchmark question.