Scribd Logo
Carica

Benvenuto in Scribd!

  • Big Data Credit Scores

    Caricato da

    RF
    7 visualizzazioni11 pagine
    The document discusses how big data approaches can be used to improve credit ratings and scoring in retail business. It outlines that big data incorporates volume, velocity, and variety of structured, semi-structured, and unstructured data. This large amount of diverse data from sources like credit bureaus and transactions can be combined with traditional credit scoring models to generate more informative predictions by leveraging more readily available information without needing to establish causality. However, this approach also faces challenges regarding data transparency, privacy concerns, security, and accuracy that must be addressed.

    Descrizione originale:

    Presentation about Big Data used for Credit Scores

    Copyright

    © © All Rights Reserved

    Formati disponibili

    PPTX, PDF, TXT o leggi online da Scribd

    Hai trovato utile questo documento?

    Questo contenuto è inappropriato?

    Segnala questo documento
    The document discusses how big data approaches can be used to improve credit ratings and scoring in retail business. It outlines that big data incorporates volume, velocity, and variety of structured, semi-structured, and unstructured data. This large amount of diverse data from sources like credit bureaus and transactions can be combined with traditional credit scoring models to generate more informative predictions by leveraging more readily available information without needing to establish causality. However, this approach also faces challenges regarding data transparency, privacy concerns, security, and accuracy that must be addressed.

    Copyright:

    © All Rights Reserved
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    7 visualizzazioni11 pagine

    Big Data Credit Scores

    Caricato da

    RF
    The document discusses how big data approaches can be used to improve credit ratings and scoring in retail business. It outlines that big data incorporates volume, velocity, and variety of structured, semi-structured, and unstructured data. This large amount of diverse data from sources like credit bureaus and transactions can be combined with traditional credit scoring models to generate more informative predictions by leveraging more readily available information without needing to establish causality. However, this approach also faces challenges regarding data transparency, privacy concerns, security, and accuracy that must be addressed.

    Copyright:

    © All Rights Reserved
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 11

    Models Using Big Data Approaches to

    Improve Credit Ratings / Scorings in


    Retail Business
    Infobox

    by Tim Decker (0616)

    12.08.2016

    Topical Research Issues: Entrepreneurship

    MScGMG 2014

    Agenda
    Big data
    Credit scores
    Bringing the two together
    Benefits
    Challenges
    Conclusion

    12.08.2016

    Big Data Credit Scoring

    Big data

    Volume

    Velocity

    Structured data

    12.08.2016

    Big Data Credit Scoring

    Variety

    Semistructured data

    Big
    data

    Unstructured
    data

    Credit scores
    Yes/no indicator AND pricing
    Looks for similarities between loan applicants
    Multivariate regression analysis
    Threshold decision

    12.08.2016

    Prediction: pays
    back

    Prediction: doesnt
    pay back

    Reality: pays back

    correct

    False negatives
    (lost revenues)

    Reality: doesnt pay


    back

    False positives
    (lost principal
    amount)

    correct

    Big Data Credit Scoring

    Bringing the two together

    Credit bureau
    data

    Transactional
    data

    Big data

    12.08.2016

    Big Data Credit Scoring

    Benefits
    More
    information

    Readily
    available

    No causality
    needed

    Digitalization

    12.08.2016

    Big Data Credit Scoring

    Challenges
    Transparency

    Privacy
    concerns

    Data
    security

    12.08.2016

    Big Data Credit Scoring

    Data
    accuracy

    Implemen
    -tation

    Conclusion
    To make use of the benefits..
    you have to deal with the challenges
    Transparency in moderation
    Be ready to invest big
    ANDconsider the limitations

    Empirical evidence is questionable or missing


    Legal situation is complex yet outdated

    12.08.2016

    Big Data Credit Scoring

    Thank you for your attention!

    Backup

    12.08.2016

    Big Data Credit Scoring

    10

    Credit scores
    Information is valuable
    10
    9
    8
    7
    6
    number of defaults

    random distribution
    with scoring
    perfect information

    4
    3
    2
    1
    0
    0

    10 20 30 40 50 60 70 80 90 100
    number of loans given

    12.08.2016

    Big Data Credit Scoring

    11

    Potrebbero piacerti anche