Latest News Headlines
Commercial Credit News
|Boost to banks as ‘next generation’ credit risk model paves way for personalised interest rates|
|Friday, 07 August 2015|
A new model to help banks more accurately assess the volume and timing of customer defaults could provide the key to the ‘next generation’ of credit risk modelling, protecting against institutional instability as well as paving the way for personalised consumer interest rates. The model is set to be revealed at a global gathering of credit experts in Edinburgh in August.
The ‘intensity model’ developed by Professor Jonathan Crook and Dr Mindy Leow at the University of Edinburgh Business School is a leap forward compared to current risk modelling used by banks. It provides a way to assess the probability of a customer in any given month, rather than just in a 12 month period, falling behind with their payment. It is the first model to bring macroeconomic considerations together with micro predictors based on previous behaviours, in order to reduce the £13.2 billion black hole created by defaults each year.
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197