Risk Assessment Criteria

Blend.ph executes the assessment with the series of information and documents that the borrowers submit.

MINIMUM RISK ASSESSMENT

The minimum Risk Acceptance criteria (MRAC) is a system driven risk assessment that checks the eligibility of borrowers from the information they give us during their registration.

This is done to get rid of illegible borrowers that may apply for a loan.

the criteria of illegible borrowers differ from one loan product to another. Generally, illegible borrowers may include:

1) minors
2) non-regular employees
3) employees whose salary is lower than the minimum wage

illegible borrowers will be automatically rejected by the system

Blend.ph has its Internal Credit Score that helps our Risk Analysts to decide whether to approve a loan or not.

The Credit Model of Blend.ph uses a binary logistic regression that uses the given borrower information. The probability of default given by the logistic function will be scaled accordingly to the Information Value and Weight of Evidence of each corresponding category to generate the borrower’s unique risk type.

Blend.ph also conducts regular updates on its risk model as a way to ensure the accuracy and precision of the credit model when necessary.

EXTERNAL CREDIT ASSESSMENT

Blend.ph also uses credit reports from trusted third-party credit bureaus as a way to guarantee that the borrower has no existing loans in other financial institutions.

After the generation and collection of the internal credit report and external credit report, it will be passed on to Blend.ph’s Risk Analysis team.

Blend.ph’s devoted Risk Analysts will assess the reports and will decide to approve or reject the loan application. They will also execute the final risk tagging on each loan application. Loans that were approved will be auctioned where our Peer-to-Peer investors would be able to bid to fund the loan. Our Risk Analysts also have the responsibility to mitigate opportunity loss by cross-selling other loan products to borrowers that do not pass a certain criterion in risk assessment.

Our team always keeps a keen eye on every loan application to ensure the security of our investors’ assets.