Credit granting sorting model for financial organizations

Abstract

Considering the environment of risks and influences inherent in the decision-making process for credit-granting operations, it has become a matter of survival for financial organizations to seek to improve how they engage in effective decision-making to ensure that their returns on invested capital will meet the expectations established at the beginning of the process. A credit-granting sorting model for financial organizations is proposed. The model aggregates the perspectives of different decision-makers to support an organization in the process of credit analysis and, consequently, to improve its operationality. The decision-making model is based on the ELECTRE TRI-B multicriteria method. It sorts credit-granting proposals into three classes, namely credit approved, technical analysis, and credit rejected. The group decision emerges from the decision rules of the organization’s executive board. This new proposed approach to dealing with credit-granting results in the systematization of credit analysis, reduction of doubt among decision-makers, avoidance of the emergence of informal groups, reduction of conflicts within a financial organization, and external interferences.