Top Tips for Data Security
The success of companies in the 21st-century depends on the ability to mitigate data breaches, proactively tend to privacy risks, and manage both compliance and cybersecurity fundamentals that secure customer data. Companies that offer financial services handle large amounts of highly sensitive financial and personal information, making them more vulnerable to cyberattacks. The push for […]
How Explainable AI Looks to Overcome AI’s Greatest Challenges
With the proliferation of artificial intelligence (AI) technologies in different financial and IT industries, AI’s potential has only increased. As AI tools become more advanced, there is an increased possibility that most of the decision-making computations are done in a “black-box” with no human explainability. Explainability is the key to customer trust, especially in the […]
Subconscious Bias: The Silent Exposure to Non-Compliance
Could your lending practices be biased, even if you take steps to ensure that your inputs and systems are not using any prohibited factors? The answer is yes. According to the Consumer Financial Protection Bureau and Regulation B, even if you completely avoid all prohibited factors, your lending practice could be non-compliant if its outcomes […]
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 […]
Our Response to the OCC’s Senate Testimony on Regulatory Priorities
The Acting Comptroller of the Currency is responsible for addressing matters facing the OCC and the American federal banking system. This article makes reference to his testimony on August 3, 2021 to the Senate Committee on Banking, Housing and Urban Affairs, which can be read in full here: Written Testimony of Michael J. Hsu, Acting […]
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 […]
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 […]
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 […]
