To ask or not to ask, that is the question

Recent developments in consumer credit risk assessment

“…For example some progress has been made on finding the factors that affect the probability of acceptance. Seow and Thomas (2007) have presented students with hypothetical offers of a bank account and each potential borrower had a different set of (hypothetical) account characteristics offered to them. The aim was to find the applicant and account characteristics that maximized acceptance probability.…”

Modified TAROT for cross-selling personal financial products

“…TAROT aims to determine which questions to ask to the applicant and then from the responses, decide on which offers to make. Seow and Thomas (2007) determined what to extend to a customer by identifying the acceptance rate of the offers in TAROT.…”

“…There are no publicly available data on acceptance rate. Hence, [9] used the data from a Fantasy Student account for the acceptance of a financial product. In order to get this data, students were required to apply for a fantasy current account online.…”

“…Hence, this kind of decision tree is not an optimal classification tree. This technique is a work done by [9].…”

“…The research is an extension of the work done in [9]. The focus of this research is on the questions of applicant characteristics and what offer should be given to them given they would have already accepted one of the financial products from the bank.…”