SMERATE is a credit rating framework developed by Surya for retail and corporate customers of a bank. SMERATE supports creation of multiple scoring models by user bank. Models can be based on quantitative and qualitative attributes and takes into account assessment practices followed at leading banks. Models can be configured for new customers and periodic evaluation of existing customers. SMERATE comes with default models to assess corporate and retail customers. Users may build new scoring models within SMERATE. New model creation does not require IT intervention. Once a new model is created, the model gets mapped based on customer type, industry or facility requested. This
ensures that any new credit application will automatically get mapped to one of the models configured in SMERATE.
Rating approach adopted is one in which financial and non-financial attributes are defined, weights given to each of them with permissible range of scores or options associated with each attribute. Process adopted is, for a loan officer of a bank to rate each attribute. When the rating is complete, it generates a credit score which is then automatically mapped to credit risk grade structure of bank.
A credit workflow is available that enables bank to incorporate subjective elements in the credit evaluation process. A file with a sub-optimum score can be reviewed by risk or senior management for a case-to-case review and approval.