AI Modeling

FICO and Vantage scores are well-known, widely used, and easily accessible. Meanwhile, building a custom credit model can take significant resources. So why build your own? Let's dive into how FICO and Vantage work, how custom models differ, and why custom models can deliver meaningful performance gains. What Are FICO and Vantage? FICO and Vantage scores are generic, off-the-shelf credit scores built using credit bureau data from TransUnion, Experian, and Equifax. FICO has be

One of the most common questions we get about building a credit model is " How much data do I need to make it work? " And like many questions in credit modeling, the answer is " it depends ." In this post, we’ll break down the data volume question across three dimensions: rows , columns , and outcomes , and how those impact your modeling approach. Row Count: How Many Records Do You Need? Most clients asking about data volume are thinking of the row count (the number of histor

If you’ve built credit underwriting models, you're familiar with the modeling metric called “AUC.” AUC is the primary metric used to...

FinRegLab, a nonprofit focused on innovations that advance responsibility and inclusiveness in the financial sector, has released the results of a broad research project entitled Explainability and Fairness in Machine Learning for Credit Underwriting (1). Noteworthy for its range of empirical testing and numerous collaborators, including many leading financial technology companies, the paper is a comprehensive review of the tools available to help lenders responsibly and comp

Make explainability the core of the process, not a feature of the model.