A group decision model for credit granting in the financial market

Group decision models that contemplate the particularities of the decision-making process help organizations pursue their strategic objectives. In the financial market, the primary interest of organizations consists in ensuring financial returns, which guarantee stability for the organization. This study identifies major problems in the current process of credit granting in the financial market and argues the need for automatizing the organizational decision process while respecting the autonomy of decision-makers. To this end, this study proposes a group decision model based on the Strategic Choice Approach (SCA) for granting credit in a financial market organization. The results show that the adoption of the proposed model offers considerable gains in terms of organizational goals, transparency of the decision-making process, security for decision-makers, and reduction of organizational conflicts.

[1]  David H. Gustafson,et al.  Group Techniques for Program Planning: A Guide to Nominal Group and Delphi Processes , 1976 .

[2]  Paul C. Nutt.  Planning Methods for Health and Related Organizations , 1985 .

[3]  Allen Hickling,et al.  The Strategic Choice Approach to Managing Uncertainty , 1986 .

[4]  Annette N. Shelby,et al.  Applying the Strategic Choice Model to Motivational Appeals: A Theoretical Approach , 1991 .

[5]  J. K. Friend.  New directions in software for strategic choice , 1992 .

[6]  D. Collier,et al.  Strategic Choice Models of Political Change in Latin America , 1992 .

[7]  A. Khakee,et al.  Applying Futures Studies and the Strategic Choice Approach in Urban Planning , 1993 .

[8]  Ralph L. Keeney,et al.  Value-Focused Thinking , 1996 .

[9]  C. Eden,et al.  Making Strategy: The Journey of Strategic Management , 1998 .

[10]  David A. Lake,et al.  Strategic Choice and International Relations , 1999 .

[11]  Constantin Zopounidis,et al.  Multicriteria decision aid in financial management , 1999, Eur. J. Oper. Res..

[12]  C. Zopounidis,et al.  Multi‐criteria decision aid in financial decision making: methodologies and literature review , 2002 .

[13]  Jackie Phahlamohlaka,et al.  Community planning for rural education in South Africa , 2004, Eur. J. Oper. Res..

[14]  Jonathan Rosenhead,et al.  Problem structuring methods in action , 2004, Eur. J. Oper. Res..

[15]  Chin-Tsai Lin,et al.  Fuzzy Group Decision Making in Pursuit of a Competitive Marketing Strategy , 2010, Int. J. Inf. Technol. Decis. Mak..

[16]  Zhi-Xin Su,et al.  A Hybrid Fuzzy Approach to Fuzzy Multi-Attribute Group Decision-Making , 2011, Int. J. Inf. Technol. Decis. Mak..

[17]  NIPAT JONGSAWAT,et al.  A Study of Two Different Experimental Settings for Group Awareness Information in a Web-Based Group Decision Support System , 2011, Int. J. Inf. Technol. Decis. Mak..

[18]  A. Adla,et al.  A Proposal of Toolkit for GDSS Facilitators , 2011 .

[19]  Danielle C. Morais,et al.  Applying Strategic Choice Approach for Decision Making of Watersheds Committees , 2013, 2013 IEEE International Conference on Systems, Man, and Cybernetics.

[20]  Constantin Zopounidis,et al.  Multiple criteria decision aiding for finance: An updated bibliographic survey , 2015, Eur. J. Oper. Res..

[21]  Andrew B. Whinston,et al.  Harnessing Internet finance with innovative cyber credit management , 2015, Financial Innovation.

[22]  N. Thillaigovindan,et al.  New Method for Solving a General Multiple Criteria Decision-Making Problem Under Risk in Fuzzy Environment , 2016, Int. J. Inf. Technol. Decis. Mak..

[23]  Irina Khutsishvili,et al.  More Precise Decision-Making Methodology in the Temporalized Body of Evidence. Application in the Information Technology Management , 2016, Int. J. Inf. Technol. Decis. Mak..

[24]  Agent Based-Stock Flow Consistent Macroeconomics: Towards a Benchmark Model , 2016 .

[25]  Xiaohong Chen,et al.  A Large Group Decision-Making Method Based on Fuzzy Preference Relation , 2017, Int. J. Inf. Technol. Decis. Mak..

[26]  Özgür Kabak,et al.  A Decision Support Methodology for Locating Bank Branches: A Case Study in Turkey , 2017, Int. J. Inf. Technol. Decis. Mak..

[27]  K. N. A. Arthur.  Financial innovation and its governance: Cases of two major innovations in the financial sector , 2017 .

[28]  Christian Diller,et al.  Der «Strategic Choice Approach»: ein in Deutschland unterschätzter Methodenbaukasten für die Raumplanung , 2017 .

[29]  Isabella Maria Lami,et al.  Experimental Use of Strategic Choice Approach (SCA) by Individuals as an Architectural Design Tool , 2018 .

[30]  Faisal Mustafa,et al.  Impact of global financial crunch on financially innovative microfinance institutions in South Asia , 2018, Financial Innovation.

[31]  Silvia Angilella,et al.  A credit risk model with an automatic override for innovative small and medium-sized enterprises , 2019, J. Oper. Res. Soc..