Credit scoring is the use of predictive modelling techniques to support decision making in lending. It is a field of immense practical value that also supports a modest amount of academic research. Interestingly, the academic research tends not to be put into practice. This is not a result of insularity and arrogance on the part of the practitioners, but rather, of the practitioners having a be...

In rich countries, lenders often rely on credit scoring—formulae to predict risk based on the performance of past loans with characteristics similar to current loans—to inform decisions and to control costs. Can credit scoring do the same for microfinance lenders in poor countries? This paper argues that scoring does have a place in microfinance. Although scoring is less powerful in poor countr...

The last years have seen the development of many credit scoring models for assessing the creditworthiness of loan applicants. Traditional credit scoring methodology has involved the use of statistical and mathematical programming techniques such as discriminant analysis, linear and logistic regression, linear and quadratic programming, or decision trees. However, the importance of credit grant ...

Personal credit scoring is the application of financial risk forecasting. It becomes an even important task as financial institutions have been experiencing serious competition and challenges. In this paper, the techniques used for credit scoring are summarized and classified and the new method—ensemble learning model is introduced. This article also discusses some problems in current study. It...

one of the effective solutions for improving the efficiency of economy is credit scoring in banking industry. this mechanism causes fair capital distribution in society, increasing the speed, accuracy and efficiency of money circulation from suppliers to suppliants, increasing transparency ,public confidence and finally decreasing financial crimes and improving safety and welfare in the society...