Other Computer Engineering Commons^™

A Window Of Opportunity: Assessing Behavioural Scoring, Kenneth Kennedy, Brian Mac Namee, Sarah Jane Delany, Michael O'Sullivan, Neil Watson

Articles

After credit has been granted, lenders use behavioural scoring to assess the likelihood of default occurring during some specific outcome period. This assessment is based on customers’ repayment performance over a given fixed period. Often the outcome period and fixed performance period are arbitrarily selected, causing instability in making predictions. Behavioural scoring has failed to receive the same attention from researchers as application scoring. The bias for application scoring research can be attributed, in part, to the large volume of data required for behavioural scoring studies. Furthermore, the commercial sensitivities associated with such a large pool of customer data often …