Credit Scoring Products and Emerging Modeling Techniques:

Credit Scoring Products and Emerging Modeling Techniques: black box method no longer acceptable, consumers demand transparency Press Release: Global Information, Inc FARMINGTON, Conn., April 9, 2013 /PRNewswire-iReach/ -- The financial reputation of a consumer in the U.S. essentially boils down to his credit score. There are the well-known factors that most people know about – large amounts of bad debt, late payments, cancelled credit cards, and an overall lack of borrowing and payment history. Yet, the majority of consumers continue to remain in the dark about the statistical science that determines the 3-digit number labels that communicate our level of risk or financial credibility to lenders. While consumers do have access to credit bureau information, the actual credit decision data lenders use to generate credit scores are hidden in a web of complicated custom scoring models and scorecards for every distinct product line. The credit scoring process was basically one big black box. However, new regulations are changing the way financial institutions make credit scoring decisions as demand for transparency swells. Trends in Credit Scoring and Model Development New research from Mercator Advisory Group's report will help payments industry participants understand the basics of credit scoring and scoring model development, as well as the best practices and evolving methods being used by lenders and scoring vendors for deployment of scoring products. Report highlights include: Overview of the credit scoring model development and implementation life cycle; Review of the credit scoring products available for use by participants in the payments industry; Discussion of trends in consumer credit and credit scores in the United States; Commentary on expanding regulatory oversight of credit reporting agencies and scoring model owners; Examination of best practices and evolving methods for credit scoring and using credit scores, as well as supplemental and alternative data, in lending risk decisions. More information about this report and a free sample are available at http://www.giiresearch.com/report/mag268425-trends-credit-scoring-model-development.html Banks: Global Industry Guide See Also Study and Report by the Mercator Advisory Group New Mercator Advisory Service report explores scoring products and emerging modeling techniques Boston, MA - April 4, 2013. A report by Mercator Advisory Group presents research that will help payments industry participants understand the basics of credit scoring and scoring model development, as well as the best practices and evolving methods being used by lenders and scoring vendors for deployment of scoring products.