FAQs

Frequently Asked Questions:

  1. What is CreditWiz+?
    Answer: CreditWiz+ is a credit evaluation and portfolio management software. It can be used to cover a very wide spectrum of businesses - from SMEs to large corporate groups.

  2. What outputs does CreditWiz+ provide?
    Answer: CreditWiz+ generates a risk rating for the subject organization and also provides likely default probabilities over a period of as much as six years. Technically, these are known as the Expected Default Frequencies (EDFs).

  3. What else can the CreditWiz+ do?
    Answer: The software can provide the user with a indicative figure as to what credit premium should be charged for the credit extended to compensate for the risk assumed based on certain parameters. It can also monitor portfolio concentrations based on user-specified guidelines.

  4. Who can use CreditWiz+?
    Answer: CreditWiz+ would be useful to anyone who has to take decisions pertaining to matters of credit. This includes a wide gamut of organizations such as banks; financial institutions; financial services companies; investment departments of insurance, pension and mutual funds; credit controllers in large manufacturing and trading organizations; treasurers of large corporations; etc.

  5. Does CreditWiz+ need to be customized to meet the requirements of the user organization?
    Answer: CreditWiz+ may have to be customized to meet the specific needs of the user. Where necessary, we undertake to provide the necessary customization.

  6. Can CreditWiz+ be used for evaluating banks and financial institutions?
    Answer: No. CreditWiz+ cannot be used to evaluate banks and financial institutions. For that there is another software package called BankWiz. CreditWiz+ can also not be used for consumer credits. The appropriate software for that is CreditWizMini. Moreover, CreditWiz+ cannot provide value at risk analysis. For that the appropriate software is CreditWizVar.

  7. Will CreditWiz+ help us meet the requirements of the Basle Accord II?
    Answer: Yes. CreditWiz+ has been designed to provide the user with all the outputs as are required for the credit function by Basel II. Further, it can also be customized to meet the specific requirements of the local regulatory authorities.

  8. What is CreditWizVar?
    Answer: CreditWizVar is a software package for Value at Risk analysis of marketable securities. The unique feature of this software is that it combines both market and credit risks. This software is particularly useful to organizations that deal in marketable fixed income securities.

  9. What is CreditWizMini?
    Answer: CreditWizMini is a software package for evaluating consumer credit requests.

  10. How does CreditWizMini work?
    Answer: Consumer Credit is a small ticket, large volume business. Given the very competitive pricing that is the feature of this business in most markets, it is very necessary that overhead costs be kept low without compromising on the quality of decision-making. Senior, more expensive lending officers cannot be assigned the task of evaluating such small loans. To do that would be to increase the cost of processing. Yet, the bank cannot afford loan delinquencies beyond a point. That would be disastrous. An "expert system" designed specifically to meet the needs of an organization then becomes the need of the day. Such a system has to be based on a study of the local environment. This means it has to incorporate the inputs received from the bank’s senior management, the available empirical data on defaults and the local cultural ethos. The last of these determine life-styles, spending habits and value systems. All these have a bearing on the ability and willingness of the borrowers to service loan obligations. The software profiles a prospective customer on the basis of the above and provides an indication on the acceptability of the proposed credit.

  11. What else can CreditWizMini do?
    Answer: CreditWizMini also has an option to support, if required, the post-disbursal monitoring process and allow for the creation of a database and provide for data mining. We customize the package to meet specific end-user requirements.