The Data Analytics Blog

Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.

Shift happens: Top tips on Scorecard re-alignments

Principa employs a variety of best-practice credit scorecard building techniques including mathematical programming, regression modelling, optimal segmentation-seek genetic algorithms and reject inference parceling, amongst others. Through our credit risk scorecards businesses can look to improving their credit risk decisioning by 5-30%.

Peoples habits are changing - Are you adapting?

  Peoples habits are changing - Are you adapting?

10 ways of combating application fraud (part 1)

New technology gives the promise of greater enablement. But some of the shrewdest entrepreneurs understand that opportunity comes from the unintended consequences of new technology. So, let us take digitalisation of the loan application process: the opening of digital channels has enabled lenders to service their customers 24/7 and through APIs integrate with a host of sophisticated services. However, the advent of the digital channel has meant more opportunity for fraud.  The question to ask is:

The time is NOW for model validation and adjustment.

One of the major premises used in credit scoring is that “the future is like the past”. It’s usually a rational assumption and gives us a reasonable platform on which to build scorecards whether they be application scorecards, behavioural scores, collection scores or financial models.  That is reasonable until something unprecedented comes along.  You can read about this black swan event in our previous two blogs here and here

10 ways the COVID-19 crisis will affect your credit models (PART 2)

This is the second of a 2-part blog. You can read the first blog here.

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