Automated Credit Decision

From Open Risk Manual


Automated Credit Decision is a Credit Decision process that is largely based on automated (digital) processes that do not involve human intervention and/or judgment that is specific to the decision being taken.


Standardized retail businesses in particular do mostly without individual interventions in the credit decision process, with the result of the standardized Credit Rating process being the major basis for the credit decision.

Increasingly, largely automated decision processes are also used in the small business segment. The prerequisite is a clear definition of and the data to be maintained for this customer segment. This makes it possible to create the conditions to derive a Discriminatory Analysis function.

Authority to Set Conditions

Internal organization guidelines need to lay down the responsibility for the final decision concerning conditions. If a calculation of the conditions in line with the risk involved is carried out by automated systems, the sales unit can have the sole authority to set conditions.[1]

See Also


  1. Oesterreichische Nationalbank, Guidelines on Credit Risk Management, Credit Approval Process and Credit Risk Management

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