The time saving involved meant that banks could focus more time on marginal applications, existing loans that are showing signs of distress and processing more loan applications. Use  BIS central bankers’ speeches  5  of credit scoring has also meant that the marginal benefits of taking and maintaining collateral are not justified for small loans. 16.
The Bank of England has also acknowledged that there is some evidence of banks being more willing to lend on an unsecured basis when using credit scoring, which potentially improves the access to bank finance for very small and start-up Small and Medium Enterprises. For the borrower, the benefits from credit scoring include increased access to credit and, in some cases, lower borrowing costs.