Posts by: Rola El Sebai

Reject Inference for Application Scorecards

Published March 29, 2017.

Financial institutions rely on credit scoring models to assess the risks associated with granting credit. In particular, application scorecards are commonly used as decision support mechanisms for customer acquisition and are developed based on approved applicants. Declined applicants are not included in the modeling exercise, which makes sense because their performance is not known. However, […]

Bankruptcy Scores

Published March 1, 2017.

Most of us have heard about risk scores whether we are seeking to rent a property or applying for a loan. A risk score measures the likelihood of a customer defaulting within a certain time frame. It acts as a tool to help in understanding someone’s probability of missing payments and eventually ending up in […]