# About FiinGroup Credit Score

FiinGroup applies advanced statistical methods to our database which contains nearly 1 million companies (non-financial) in Vietnam. 

Our Credit Score or *“FiinGroup CreditScore”* offers insight into the likelihood that a business could make a late payment, go bankrupt, or have a financial stress issue in the near future (12 or 24 months). 

FiinGroup Credit Score assigns a score on a scale of 1 to 100, with 100 being the best financial health or very low credit risk.

### Why does the credit score useful?

Credit scores are assigned to your clients and debtors. Corporates and Financial Institutions can use the FiinGroup CreditScore in multiple use cases such as screening potential clients to assess their credit risk before establishing a business relationship. The FiinGroup CreditScore provides several advantages over traditional credit analysis methods, including:

**Improved consistency**: Credit scoring models incorporate multiple quantitative and qualitative risk factors to assess creditworthiness, with a focus on the most predictive risk factors. This standardization eliminates subjectivity and ensures consistency in the measurement year over year and across industries.

**Enhanced efficiency:** Credit scoring models allow for the quick and easy evaluation of the credit risk of thousands of companies, saving time and resources compared to manual analysis.

**Expanded view and accuracy**: Credit scoring models leverage comprehensive financial data and analytics to provide a more complete picture of credit risk. This includes data from macroeconomics, industry data, and corporate data.

**Improved decision-making**: By automating the credit analysis process, credit scoring models enable faster and more informed decision-making for loan approvals, credit limit increases, and other important financial decisions.

**Increased accessibility**: Credit scoring models allow small and medium-sized enterprises to access the same level of credit analysis as larger corporations, leveling the playing field and enabling access to financing and other credit-related services.

FiinGroup CreditScore provides a consistent, efficient, accurate, and informative approach to evaluating credit risk, helps you transition your existing internal rating or scoring models, and automate credit reporting.

### Who uses the credit scores

**Businesses**

Businesses, especially those involved in credit-sales transactions with a large volume of clients, may use the credit score to assess counterparty risk, which is the potential risk that a client may not fulfill financial obligations.

FiinGroup CreditScore can be utilized by businesses in:

* Evaluating the creditworthiness of customers before extending credit or signing a contract with a supplier.
* Monitor the credit risk of the receivable portfolio.

**Bank**

Banks can use credit scores throughout the credit life cycle, including:

* Using credit score to filter potential customers, especially SMEs, because internal score only contains existing clients, and bureau score only covers clients with existing credit relationships.
* Input in the loan application process, an external credit score can use as support for the internal score for approval or rejection of the loan request and pricing.
* Monitor the credit risk of existing customers.

**Investors**

Investors can use the credit score to help assess credit risk and to compare different issuers, and debt issues, create yield curves for benchmarking, and manage their portfolios.

Individual investors, for example, may use the credit score in evaluating the purchase and compare between risk and returns of securities.

Institutional investors, including mutual funds, and insurance companies, can use the credit score to supplement their own credit analysis of specific debt issues.

A credit score may be used as a fast assessment of credit quality, but due to the reliance of the credit score on quantitative factors, investors should consider a variety of factors, including their own analysis.

**Intermediaries, e-commerce, and trade promotion organizations**

Intermediaries, trade promotion agencies, trading houses, and e-commerce platforms can use credit scores to reduce counterparty risk in trading activities by benchmarking the relative credit risk of users and clients and setting initial requirements for participants.

For example, an e-commerce platform may include a user's credit score in their profile, providing other clients with information about the buyer's credit risk.<br>


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