Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.
One of the basic principles of credit scoring and modelling is that the “future is like the past”. Whilst robust credit models may be calibrated on multiple time periods, this assumes that trends in the past represent what is going on today. COVID-19 is a black swan event – meaning in the modern day it really is unprecedented. If you have never come across the term black swan, or if you have but no idea the origin, I recommend taking two minutes to read its really interesting etymology.
With a recent judgment being upheld in favour of the National Credit Regulator (NCR) against Shoprite Investments Limited, we thought it would be a good time to re-look at the process of affordability assessment.
At Principa, we are passionate about new ideas and product development. 20% of our revenue is ploughed back into innovation. One of our key areas of focus is machine learning where we have built machine learning solutions in both collections and the customer acquisition space. While our focus is primarily on credit risk and customer engagement, we are always interested in how machine learning has gained traction in other industries.
Whether you’ve been involved in introducing models into your business or have had a passing interest in economic affairs, you may have come across the term “Gini-coefficient”. This blog hopes to demystify the concept and give you a good deal of information on the statistical measurement. We answer: