Neill Crossley

On this blog, I’ve previously warned about the dangers of ignoring data sample bias, a problem often leading to predictive models that don’t perform to expectations. It’s an analytic example of “garbage in, garbage out” that, for lenders, can result in erroneous and often very expensive decisions, such as higher default rates due to extending credit to the wrong peopl…

I've been highlighting questionable modelling practices by some retail banks under the auspices of Basel II compliance, as well as offering alternate best-practice guidance. Today, in my third entry in the series, I’ll focus on the misuse of the Gini coefficient measure, which generally falls into two categories: “Chasing the Gini” Basel II has increased the f…

I’ve been blogging about problematic modelling practices that may be creeping into some retail banks under the auspices of Basel II compliance. This time, I’ll focus on two areas related to sample bias, a problem which often leads to models that don’t perform to expectations: Not building models on the population they are going to be used on In the context of…

Are bad modelling practices creeping into some retail banks under the auspices of Basel II compliance? I built my first credit scorecard nearly 20 years ago, and these days I regularly work with retail banks on their approach to the predictive model lifecycle, from undertaking health checks to improving efficiencies and insight. Recently for a few banks, a concern st…