Method and system for credit decisioning using activity...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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C705S038000, C705S007110

Reexamination Certificate

active

07966254

ABSTRACT:
Method and system for credit decisioning using activity based costing and compartmental modeling. Credit product profitability for a financial institution using credit scorecards is improved by providing an analysis that results in a recommended credit cutoff score for a particular loan product. The selected cutoff score is determined with input including pass and bad rate parameters for the pertinent scorecard, workflow analysis for the loan process, compartmental modeling of the workflow, and activity based costing (ABC) for the workflow. In some embodiments, data related to portions of the analysis for a particular scorecard is saved for re-use, so that a new cutoff score for a particular type of loan can be determined relatively quickly and easily if only the financial institution's costs have changed.

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John A. Jacquez, “Compartmental Analysis in Biology and Medicine: Kinectics of Distribution of Tracer-Labeled Materials”, 1972, Elsevier Pub. Co., 2nd edition, pp. 1-2, 20-21, 309-316, and 362-363.

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