Skip to main content

Beyond static scores

Traditional credit scoring looks at an entity in isolation — payment history, registered debts, basic attributes. It misses the context that actually predicts outcomes. Credit risk is relational. An entity’s risk profile depends on its counterparties, its position in supply chains, the health of its network. A company with a perfect payment history becomes high-risk when its main customer is failing.
Avra’s foundations capture relationship patterns that traditional systems miss — multi-hop network effects, behavioral trajectories, and latent risk signals.

How Avra assesses credit

We compose two pre-trained foundations with your business reality:
1

Graph Foundation Model

The GFM already understands the relational economy — entities, their counterparties, supply paths, judicial events, sector dynamics. Network position and behavioral trajectories are learned before we ever see your portfolio.
2

Your Relational Foundation Model

Your RFM brings your portfolio’s reality — customers, payment behavior, the connections that matter for your specific lending or trade-credit operation.
3

Downstream credit model

A task-specific model is trained on top of both foundations using your delinquency definitions and outcomes. Signal from training feeds back into your RFM, making the next iteration sharper.

What you receive

Credit score and probability of default

Every prediction returns both:
  • A 0–1000 credit score for easy integration with existing decision engines and policy rules.
  • A calibrated probability of default (PD) for risk-based pricing, capital allocation, and portfolio analytics.
The score is derived from the PD — monotonic, stable across versions, and aligned with your delinquency definition.

Multi-horizon PD

PD is delivered across multiple time horizons so each decision uses the window that matches its policy:
HorizonTypical use case
30 daysShort-term liquidity, payment-timing risk
60 daysTrade credit, early delinquency signals
90 daysStandard lending decisions
180 daysMedium-term facilities, portfolio planning
365 daysAnnual loss forecasting, IFRS 9 staging
Each horizon is independently calibrated — the 30-day PD is not a scaled version of the 365-day PD. Different signals matter at different time scales.

Fine-tuned PD

Beyond the standard horizons, downstream credit models are calibrated to your delinquency definition. Common shapes:
DefinitionDescription
FPDFirst Payment Default — never made first payment
Over30MOB630+ days past due by month 6 on book
Over60MOB1260+ days past due by month 12 on book
Charge-offWritten off as a loss
You define what “bad” means; the downstream model learns it. The reported PD is the probability of your event, not a generic default.

Risk drivers

API responses include the key factors influencing each score — the network signals, behavioral patterns, and entity attributes that drove the prediction. Useful for review queues, customer communication, and regulatory transparency.

Dynamic risk monitoring

Beyond point-in-time scoring, Avra provides trajectory analysis — how entities move through the representation space over time:
  • Early warning — spot entities moving toward delinquent patterns before traditional metrics show problems.
  • Portfolio monitoring — track aggregate risk movements across your book.
  • Intervention timing — identify the moment to act, not the moment to react.

How we measure performance

We evaluate models using metrics that together give a complete picture:
  • ROC-AUC — primary discrimination across all decision thresholds.
  • PR-AUC — critical when defaults are rare and false alarms expensive.
  • KS statistic — maximum separation between good and bad distributions, widely used by financial institutions for model validation.

Why this works

Cold-start solved

Traditional models struggle with new or data-scarce entities. The graph approach infers risk from network connections, even with limited direct history.

Context-aware

Trained on your RFM, scores reflect your business relationships. A pattern normal for one segment might be high-risk in another.

Explainable

API responses include the key factors influencing each score — transparency for decisions and for compliance.

Temporal

Not just who an entity is today, but how they are evolving. Trajectory matters more than snapshots.

From scores to policy

Scores and probabilities are decision inputs. To operationalize them you typically bucket entities into homogeneous risk groups so policy thresholds map cleanly onto approve / review / deny decisions and pricing tiers. See Risk Bands for the canonical approach to optimal binning, monitoring bin stability over time, and detecting drift.

Integration

Credit intelligence is available through:
  • Real-time API — sub-second scores for underwriting decisions
  • Batch processing — score entire portfolios on a schedule
  • Embeddings — use Avra representations as features in your own credit models