Harvard Business Review

SEPTEMBER 16, 2014

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.

Credit Scoring 10

Credit Scoring Banking Dunning Metrics 10

Harvard Business Review

SEPTEMBER 16, 2014

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.

Credit Scoring 8

Credit Scoring Banking Dunning Metrics 8

Harvard Business Review

NOVEMBER 8, 2012

Prototypically, a bank officer would make credit decisions for applicants based on the applicants' "character" — which church they attended, which school their kids were in, etc. With fairly few signals in their models, the FICO score doesn't have the ability to distinguish between credit risk in a generally high risk group.

Credit Risk 9

Credit Risk Credit Scoring Retail Technology 9