Analysis of approval and disapproval of Aslah personal financing-i base on objective and subjective scoring methods / Bakhtiar Zainal

The purpose of this study is to develop an understanding of how Bank Kerjasama Rakyat Berhad lend their credit to their customer. They are two approach that been used to make analyze and to find out about the credit information and history of their customer. The approach that being used is Credit Scoring and 5C’s credit evaluation (subjective score). According to Fisher (1936), credit scoring essentially a way of recognising the different groups in a population when one cannot see the characteristic that separates the groups but only related ones.

A questionnaire had been distribute to the Bank Rakyat customer and the researcher also had been interview several staff of Bank Rakyat in order to get more deeper information and clearly vision about the research that been conduct. The dependent variable of this study is approval or disapproval of personal loan, while the independent variables are credit scoring and 5C’s credit evaluation elements. The data that has been collected through questionnaire had been analyzed by using Statistical Package for Social Science program.

After conducted this research, it showed that both credit scoring and subjective score are relevant and has impact in order to determine the approval or disapproval of personal loan at Bank Rakyat but at the same time, Bank Rakyat need to improve their scoring system in order to make sure they can be more competitive in the future among other financial institution in Malaysia.