What are the advantages and disadvantages of implementing credit scoring within a financial institution?THESE QUESTIONS REQUIRE YOU TO STATE WHICH OF THESE ITEMS BELONG TO ADVANTAGE OR DISADVANTAGE.

1 Less labour costs

2 Ability to grow the loan portfolios with less resources

3 Ability to apply standardisation across the network

4 The implementation of an impersonal and distant

5 Allows use of experienced staff at the centralised level

6 High turnover of staff based on lower job satisfaction

7 Risk and return can be quantified across the portfolios

8 A measurable rejection method

9 The potential for inappropriate analysis and decision-making

10 Lower levels of investment in training of lending officers

11 Potential alienation of the targeted client group

12 Losses are managed with statistically acceptable boundaries