Revolutionizing Credit Scoring: A Game-Changer for Financial Institutions Worldwide
The "Handbook of Credit Scoring" covers various aspects of credit scoring, including the development, validation, implementation, and management of scoring models. Researchers compare generic and customized scoring models, explore the use of consumer credit information, and discuss the modeling of continuous versus classed variables. They also delve into scorecard development, loss modeling for the home equity business, and the application of statistical techniques like data mining. The handbook emphasizes the importance of model validation, identifying potential sources of model risk, and evaluating and monitoring models. Additionally, it discusses score-based collections strategies, project management for credit scoring, and successful implementation practices.