High personal unsecured debt levels are stressing economies around the world. In response, UK has now placed the equivalent of a “do no harm” requirement on lenders which impacts their actions on both current and future customers. However, lenders are hard pressed to observe what is unobservable – affordability factors. While traditional risk tools have been in play for decades, learn from FICO how data, machine learning and a new formulation of the problem can measure underlying consumer financial stress to drive initiatives for responsible growth.
Sally Taylor-Shoff is Scores Vice President, responsible for product management, marketing, analytic and software development, and analytic delivery for global syndicated FICO score products. Sally joined FICO (aka Fair Isaac) in 1987 as a data scientist, developing application scorecards... Read More →
