COVID-19 Has Revealed the Faults in Static Credit Scoring: Here’s How to Adapt
The conventional way of credit scoring, using a static model and historical credit performance, has been operating for decades, dating back to the 1950s. Even today, conventional credit scores are used by many financial institutions to inform their lending decisions, known as a quantitative way to assess creditworthiness. However, the old methods tend to lack […]
Pulling Back the Curtain: An Exposé on Credit Scoring
At face value, consumer credit scores, typically ranging in number from 300 to 850, are just that, three digits on a report that mean nothing to the untrained eye. To lenders, these three digits tend to be the holy grail of loan decisioning, giving insight into how likely a prospect is to repay a loan […]
Navigating the Scoring Landscape: AI is NOT One-Size-Fits-All
AI and automated credit scoring has the potential to offer you a substantial boost in your lending business. However, incorrectly implemented AI could be ineffective, or worse, destroy the carefully-structured processes that drive your business forward. In credit scoring, AI is widely known to deliver strong benefits, highlighted by an immediate gain in lift and […]
Are You Really Scoring for Ability to Pay and Risk in Today’s Environment?
After Sub-Prime Auto and Leasing were obliterated during the “Great Recession”, various data points the Auto Finance eco-system relies on went through various ups & downs before things are “Normalized”. Today is quite different, with many more variables available to reach your goals accurately, competitively, and safely in Auto lending. Since GM & Ford first […]
Adopting AI for Credit and Lending Decisions: 4 Common Data Mistakes
Are you interested in adopting AI and machine learning to grow your lending? If so, the journey to realizing AI and machine learning for your credit and lending decisions essentially begins with data. Handling and preparing a massive amount of data for AI and machine learning can be uncharted territory for many. If you’re looking […]
The Role of Time Series in Loan Data Analysis
In the first two blogs of our four part blog series we covered structured and unstructured data in underwriting and the importance of ontologies, or agreements of what the data mean. This brings us to the next topic, time, and its impact when analyzing loan data. Time series modeling is a very popular and powerful way to […]
The Importance of Data Ontology in Big Data Loan Underwriting
This is the second blog of our four part blog series with topics pertaining to structured and unstructured data in big data loan underwriting. In our first blog of the series, we provided an overview of structured and unstructured data, its impact in data driven underwriting, and how to integrate unstructured data into machine learning […]
Structured and Unstructured Data in Data Driven Underwriting
Gartner estimates that 80% of enterprise data is comprised of unstructured data. Yet until tech advances afforded by machine learning, structured data has been the go-to for data analytics and models. The advances in computation power have afforded organizations the ability to analyze and incorporate unstructured data into their business decisions. One could even say, unstructured […]
Our Bet on Alternative Data for Credit Scoring
Recently five federal regulators issued a joint statement advocating the use of alternative data in credit scoring. Ultimately, the statement was to expand access to credit and provide more favourable terms to borrowers. At Trust Science we’ve been firm believers in the use of alternative data to not only serve the underbanked but also give lenders […]
Top 2020 Underwriting Data Trends
Are you ready for 2020? We believe in giving people the credit they deserve and arming lenders with credit decisioning tools and analytics that keep their business current. And to continue working on helping the credit underwriting market our CEO and CTO put together the top 5 underwriting data trends lenders need to consider for their business in 2020. […]
3 Sources of Unfair Credit Scores in Credit and Lending Decisions
How do you know if you’ve produced a fair or unfair credit score? Unfair credit scores hurt your business and your customers. In this post we’ll explore 3 sources that may result in unfair credit scores when using AI and machine learning credit scoring prediction models in your credit and lending decisions. Credit scoring helps […]
The Role of Protected Attributes in AI Fairness
Although there is high corporate demand to leverage the power of artificial intelligence and machine learning, it is critical to provide fairness and mitigate bias when implementing AI and machine learning. In this post we’ll explore a few fundamentals to implement fair AI and ML practices for machine learning credit underwriting. The post can serve […]
