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Consumer Credit Models
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Consumer Credit Models: Pricing, Profit and Portfolios

Lyn C. Thomas

Abstract

Credit scoring — the quantitative and statistical techniques which assess the credit risks when lending to consumers — has been one of the most successful if unsung applications of mathematics in business for the last fifty years. Now though, credit scoring is beginning to be used in relation to other decisions rather than the traditional one of assessing the default risk of a potential borrower. Lenders are changing their objectives from minimizing defaults to maximizing profits; using the internet and the telephone as application channels means lenders can price or customize their loans for ... More

Keywords: credit scoring, consumer lending, profitability, pricing, portfolio level credit risk, Basel Accord, scoring systems

Bibliographic Information

Print publication date: 2009 Print ISBN-13: 9780199232130
Published to Oxford Scholarship Online: May 2009 DOI:10.1093/acprof:oso/9780199232130.001.1

Authors

Affiliations are at time of print publication.

Lyn C. Thomas, author
Professor of Management Science, Quantitative Financial Risk Management Centre, University of Southampton

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