News

Skorista continues to identify new, valuable data sources for assessing MFI borrowers and has integrated the Arbitration Case Database (KAD). A new "stop factor" based on bankruptcy data from Arbitration Case Database has been added.

Why Arbitration Case Database?

Previously, Skorista relied on data from Fedresurs, where bankruptcy information appears only after proceedings have already commenced and a financial administrator has been appointed.

Arbitration Case Database offers earlier visibility—specifically at the stage when a bankruptcy petition is filed. While filing a petition does not guarantee that bankruptcy proceedings will launch or ultimately result in bankruptcy, it signals the start of specific processes and constitutes an additional risk factor.

Now, if a relevant petition is detected in Arbitration Case Database, the system triggers the stop factor and recommends rejecting the loan application.

Testing the Effectiveness of the New Stop Factor

We analyzed the correlation between the presence of a bankruptcy petition in Arbitration Case Database at the time of the loan application and subsequent loan repayment performance.

The analysis revealed a significant difference in repayment rates: borrowers with a detected bankruptcy petition performed significantly worse in meeting their loan obligations.

Thus, Arbitration Case Database complements Skorista’s existing data sources, providing an early warning signal regarding bankruptcy risk before such information appears in other sources.

For MFIs, this offers another opportunity to screen out potentially problematic borrowers during the assessment stage and protect their loan portfolios from additional risk.