In order to comply with regulatory requirements, the creditworthiness of a borrower and the risk of servicing the requested loan have to be assessed. Various service providers supply information on the financial services that a customer has used in the past.
Information collected from previous commitments within the bank can also be included.
A borrower’s assessment involves the collection and evaluation of information from:
- Credit agencies (SCHUFA, CreditReform, etc.)
- Blacklists
- Warning lists
- PEP - Politically exposed person
- Scoring
- Credit check
- Budget account
The capture and evaluation of this information serve as a basis for determining the potential credit line (volumes, repayment terms, instalment amount) and for approving the request for credit.