Behavioral scoring has emerged as a powerful tool in retail credit, revolutionizing how financial institutions manage and assess the risk of their existing customers. Unlike a traditional application scoring, which relies on a static snapshot of an individual's credit history, behavioral scoring leverages a dynamic and real-time data on a customer's payment habits, transaction behavior, and product usage. This sophisticated approach provides a deeper, more accurate understanding of a customer's creditworthiness, enabling a lender to proactively identify a potential risk and tailor a product and a service more effectively. By analyzing a rich behavioral data, a financial institution can make a more informed decision on a credit limit adjustment, a product offering, and a collection strategy.

This training program is meticulously designed to provide a comprehensive understanding of a behavioral scoring and its practical application in retail credit. You will learn to move beyond a conventional risk assessment and develop a robust framework that integrates a behavioral data into your analysis. The curriculum covers everything from an innovative data collection strategy to the role of a machine learning and its associated risks. By the end of this course, you will be equipped to design, implement, and validate a behavioral scoring model, helping your organization to make a more sound financial decision while improving a customer's experience and a profitability.

Duration: 10 days

Target Audience:

• Banking and financial professionals
• Risk and credit analysts
• Data scientists and modelers
• Product managers in a retail credit
• Professionals from public and private sectors engaged in a credit risk management
• Consultants specializing in a credit risk
• Anyone interested in the intersection of a finance and a data science

Objectives:

• Understand the core concepts of behavioral scoring and its unique risk profile
• Learn to identify and quantify a financial and a non-financial risks
• Master the principles of an integrated risk management framework for behavioral scoring
• Gain proficiency in applying specialized risk assessment techniques
• Understand and mitigate the risks of a data privacy and its implications
• Learn to navigate the regulatory and reporting requirements for a behavioral score
• Develop skills in communicating and reporting on a behavioral score
• Prepare for a future change in a data and its impact on a risk
• Implement a continuous monitoring system for a behavioral score
• Learn to use a data and an analytics for a more accurate risk assessment

Course Modules:

Module 1: Foundations of Behavioral Scoring

• The history and evolution of a credit scoring
• The different types of a credit score
• The unique risk profile of a behavioral scoring
• The key stakeholders in a retail credit
• The importance of a clear and a consistent definition of "behavioral"

Module 2: Data Collection and its Challenges

• The importance of a data source
• The role of a data quality
• The challenges of a data privacy
• The importance of a data governance
• The impact of a data breach

Module 3: Feature Engineering and its Importance

• The importance of a feature selection
• The role of a feature transformation
• The challenges of a feature creation
• The importance of a feature importance
• The impact of a feature on a model performance

Module 4: Model Development and its Validation

• The importance of a model selection
• The role of a model training
• The challenges of a model validation
• The importance of a model performance
• The impact of a model on a business decision

Module 5: The Role of a Machine Learning

• The importance of a machine learning
• The role of a supervised and an unsupervised learning
• The challenges of an explainable AI
• The importance of a model interpretability
• The impact of a machine learning on a model performance

Module 6: Implementation and Integration

• The importance of a system integration
• The role of an API
• The challenges of a legacy system
• The importance of a real-time scoring
• The impact of a technology on a business process

Module 7: The Use of a Behavioral Score

• The importance of a credit limit management
• The role of a pricing and a product offering
• The challenges of a collection strategy
• The importance of a customer retention
• The impact of a behavioral score on a customer experience

Module 8: The Role of an Innovative Financial Instrument

• The importance of a credit card
• The role of a personal loan
• The challenges of a microfinance
• The importance of a digital wallet
• The impact of a new product on a risk

Module 9: Documentation and Regulatory Requirements

• The importance of a model documentation
• The role of a regulatory compliance
• The challenges of a fair lending
• The importance of a clear and a transparent reporting
• The risks of a non-compliance and a penalties

Module 10: The Use of a Data and an Analytics

• The importance of a data-driven approach
• The use of a behavioral segmentation
• The role of a customer journey
• The importance of a continuous monitoring
• The challenges of a data availability and a reliability

Module 11: The Role of a Cross-Functional Team

• The importance of a collaboration between a data science and a business
• The role of a communication and a feedback
• The challenges of a different goal
• The importance of a clear and a consistent process
• The impact of a team on a project success

Module 12: The Use of a New Data Source

• The importance of a social media data
• The role of a geospatial data
• The challenges of a satellite imagery
• The importance of a new data source
• The impact of a data source on a risk

Module 13: Stress Testing and Scenario Analysis

• The importance of a stress test
• The use of a hypothetical and a historical scenarios
• The role of a reverse stress test
• The importance of a clear and an actionable result
• The challenges of communicating stress test results to stakeholders

Module 14: Case Studies and Best Practices

• A deep dive into successful behavioral scoring projects
• The challenges of a real-world implementation
• The importance of a strong cross-functional team
• The role of a leadership in adopting a data-driven culture
• Lessons learned from the field

Module 15: Final Project and Discussion

• A hands-on project to build a behavioral scoring model
• The role of a new technology (e.g., blockchain)
• The future of a retail credit
• The importance of a continuous learning mindset
• A final discussion on a remaining challenge and an opportunity

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.