From the course: The Data Science of Economics, Banking, and Finance, with Barton Poulson

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Automated application reviews for loans and credit

Automated application reviews for loans and credit

From the course: The Data Science of Economics, Banking, and Finance, with Barton Poulson

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Automated application reviews for loans and credit

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- [Narrator] Have you ever heard the phrase, 'all data is credit data?' That means things like Instagram geolocation data that can be used to predict spending habits? Or what about credit-worthiness by association, where the loss of your credit card privileges may be predicated on how other card owners who frequent the same stores repay lenders. And what these mean is that every digitally-traceable action you make influences your ability to acquire credit, and that's where data science becomes part of loans and credit. Now, this is something called Automated Application Review for Loans and Credit. And what is this? Well, algorithms analyze a collection of data that's provided by the borrower to determine the amount of credit offered, or the ability to secure a loan. The algorithm determines, really, how likely a borrower is to default on a loan, not pay it, or a credit card. Now, there are some important benefits to the automated review of applications for loans and credit. Number…

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