Abstract:<p>Credit scoring is an automated exercise in predictive analytics deployed by retail lenders and their agents to overcome the perennial problem of the ‘information asymmetries’ existing between debtors and creditors. Credit scoring systematically outperforms ‘subjective’ decision-making by lenders about loan applications, lowering costs and increasing profitability by boosting the speed and consistency of judgements able to be made about credit risk. This system of expert knowledge has emerged as a cruc… Show more
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