Risk Management in the Digital Age
On August 29 2019, CredoLab hosted the Breakfast Symposium at the Credit Scoring and Credit Control Conference XVI held on the 28–30 August 2019 in Edinburgh. As Europe’s premier conference for credit scoring and related topics for the past 30 years, Credit Scoring and Credit Control XVI sees more than 400 delegates biennially from over 40 countries, to bridge the academic-practitioner divide. It is the agenda-setting forum for credit scoring and control, with talks covering everything from current industry issues to the latest statistical research findings
The Symposium had 50 pre-registered delegates. The 45-min session titled Risk Management in the Digital Age: Applying AI to improve data predictability consisted of 3 sessions.
Michel Massain, Regional Sales Director - Europe & Africa for CredoLab kicked off with a few opening remarks setting the stage for the discussion. His highlighted the state of the financial industry that is looking for innovative ways of tapping into the new to bank and new to credit customers. Touching upon the power of AI, Michel handed over to Dmytro Kurov, Head of Data Science at Credolab, to delve more on this.
Dmytro presented the methodology and the tools that CredoLab uses to transform raw data into features and then select the most predictive ones to be variables of a scorecard. He also talked about CredoLab’s strategy to work with independent experts and provide them test data in order to ensure that the models generated by CredoLab provide the most predictive power. 5 tests including a recent one by Dr Susan Wang, Lecturer and Research Scholar, Yale University, confirmed the accuracy of the provided solution.
This interactive session had the audience also joining in as they discussed the role AI is playing today in risk management and financial inclusion across developing and developed countries. While Eleanor drew from her experience in Credit Risk Management, Gerald brought in insights on the importance of data and algorithm, and using AI and ML in daily work. Here is a closing remark Eleanor Demuth:
“There are limitations to AI and some specific challenges in credit modelling, but nobody should be ignoring the potential of AI techniques to transform credit risk analytical functionality. Particularly in situations of rapid change or lack of traditional data AI will give you at least an idea of what merits further research.”
Overall the session was a great start for the day of the event that discussed everything related to credit scoring and credit risk management.
We are truly grateful to the attendees and our guest speakers for joining us and helping us make this a huge success.
Read more about what makes our scoring algorithm stand out from the rest in this research paper done by Dr Susan Wang, Lecturer and Research Scholar, Yale University.
Or just reach out to us to discuss more on this in person or over a call.