Managing a Consumer Lending Business

by David Lawrence

The concept is that all members within one group have the same odds of performing in a certain way.

leaving time for the “gray area” accounts to be analyzed in detail.

Early identification of problem accounts. A score system can use credit bureau information to identify people who are building up their level of borrowing or becoming delinquent at other institutions.

Planning subtasks include determining the score objectives, selecting the developer, defining good and bad accounts, and selecting the sample.

Thus, one application model for each branch or store in the southeast region may do a superb job of ranking risk, but can the business afford to develop and administer the large number of models this geographically narrow definition implies?

Indeterminate accounts are not used in the development of the system; however, they are set aside for validation purposes.