Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.
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?
This is the second of a 2-part blog. You can read the first blog here.
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.