The Basel II Accord pointed out benefits of credit risk management through internal models to estimate Probability of Default (PD). Banks use default predictions to estimate the loan applicants’ PD. However, in practice, PD is not useful and banks applied credit scorecards for their decision making process. Also the competitive pressures in lending industry forced banks to use profit scorecards...

The rise of algorithmic decision-making has spawned much research on fair machine learning (ML). Financial institutions use ML for building risk scorecards that support a range credit-related decisions. Yet, the literature in credit scoring is scarce. paper makes three contributions. First, we revisit statistical fairness criteria and examine their adequacy scoring. Second, catalog options inco...

Credit scoring and behavioural scoring are the techniques that help organisations decide whether or not to grant credit to consumers who apply to them. This article surveys the techniques used – both statistical and operational research based – to support these decisions. It also discusses the need to incorporate economic conditions into the scoring systems and the way the systems could change ...

This paper presents a new approach for consumer credit scoring, by tailoring a profit-based classification performance measure to credit risk modeling. This performance measure takes into account the expected profits and losses of credit granting and thereby better aligns the model developers’ objectives with those of the lending company. It is based on the Expected Maximum Profit (EMP) measure...

O ne of the key topics and the most important tools to determine the strengths, weaknesses, opportunities and threats of each organization and company is the evaluation the performance of organizational activities that rating and ranking follows the internal and external goals. In this regard insurance companies similarly are looking for evaluation of their branches through scoring, ...

In multi-attribute procurement auctions with multiple objects, the auctioneer may care about the interplay of quality attributes that do not belong to the same item – like each item’s delivery time, if all items are needed at once. This can influence the performance of the auction mechanism. We generalize the Ausubel-Milgrom ascending proxy auction to such an environment and show that the main ...

With the rapid growth of credit industry, credit scoring model has a great significance to issue a credit card to the applicant with a minimum risk. So credit scoring is very important in financial firm like bans etc. With the previous data, a model is established. From that model is decision is taken whether he will be granted for issuing loans, credit cards or he will be rejected. There are s...