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AI-Based Credit Risk Tools Can Be Ruined By Noisy Data

The Horizons Tracker

One’s credit score is often hugely important, with it very difficult to secure substantial loans, such as mortgages, without a healthy credit rating. If you’re a bank, you could give loans to people and see who pays,” the authors conclude.

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How Cashless Payments Affect Our Credit Worthiness

The Horizons Tracker

The users of cashless payment systems can benefit from this approach by virtue of lower interest rates as they generally have a lower risk of defaulting. Assessing credit risk. The post How Cashless Payments Affect Our Credit Worthiness first appeared on The Horizons Tracker.

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The Value of Value Chain Analysis in Transforming Your Business

N2Growth Blog

For example, managing loss reporting and negotiating settlements could be core activities of an insurance carrier’s claims department, while assessing credit risk and originating loans could be core activities for a bank’s loan department; Support – which contains a collection of core work activities that are performed in the support (..)

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What Motivates Power-Hungry Bosses

The Horizons Tracker

“If you can think back to a time when banks had branches with local managers, it has been very well-documented that they are much better at assessing credit risks than people back in head office, for example,” the authors explain.

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StrategyDriven Editorial Perspective – Good Intentions, Bad Results: Learning from the Panic of 1826

Strategy Driven

For what lead Life & Fire’s directors to commit fraud in the first place was in part driven by a desire (so they claimed) to extend credit to high-risk borrowers being ignored by traditional banks. Why was an insurance company doing a bank’s work?

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Use Data to Fix the Small Business Lending Gap

Harvard Business Review

And limited credit is in part caused by the difficulty of predicting which small businesses will and won’t succeed. In the past, a community bank would have a relationship with the businesses on Main Street, and when it came time for a loan, there would be a wealth of informal information to augment the loan application.

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Use Data to Fix the Small Business Lending Gap

Harvard Business Review

And limited credit is in part caused by the difficulty of predicting which small businesses will and won’t succeed. In the past, a community bank would have a relationship with the businesses on Main Street, and when it came time for a loan, there would be a wealth of informal information to augment the loan application.