Tag Archives: Analytics

Analytics & Optimization Using Alternative Data in Credit Risk Modelling

Aug292017

“Whenever I bring up the topic of alternative data, the first question our board asks is, ‘Are we using Facebook data?’ “ This comment from a participant in our recent EMEA Risk Leadership Forum caused a lot of chuckles and nodding heads. When it comes to evaluating credit risk, everyone wants to know if, when and how lenders will start probing their Facebook account. For reasons that will be obvious to lenders, that tantalizing possibility doesn’t actually top the list of data sources to mine. In fact, at the forum we explored a few sources of data that can add to the picture of a consumer’s creditworthiness. Multiple Types of Alternative Data What is alternative data? In credit granting, it generally refers to any data that is not directly related to a consumer’s credit behavior. Traditional data usually means data from a credit bureau, a credit application or a lender’s... [Read More]

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Analytics & Optimization Modelling Deposit Price Elasticity: What Data Do You Need?

Analytics on screen
Aug142017

This is the second in a series of blog posts on deposit price elasticity, focusing on the modelling data requirements. There are several different modelling techniques and approaches to measure deposit price elasticity, which is dependent on the actual business problem and model usage. The exact data requirements might need to be amended to account for the modelling technique, but a large number of data items are consistent across all approaches. As with all modelling projects, it is good to initially take a step back and think about what type of information you would expect to be predictive, impact deposit price elasticity, and make you move your savings across different products and / or financial institutions. We would suggest that considering the below fields would be best practice for a deposit price elasticity model development: Product details: Historical interest rate of the product(s) to be modelled, this would include retention... [Read More]

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