Journal of
Italian
Banking
Association

year 100
 

Archive » January 2020 » Credit risk analysis and lending decisions: new Machine Learning techniques

Credit risk analysis and lending decisions: new Machine Learning techniques

Cristina Caprara, Daniele Vergari
January 2020 - n. 1
Keywords: Machine Learning, Open banking, Credito
Jel codes: G20, C55

Open banking and digital revolution: the credit chain is experiencing a profound change by the entry of new players and innovative methods of customers' engagement. In this scenario, Machine Learning techniques offer a competitive advantage if applied to make more efficient the tools supporting credit governance. The latest techniques of local interpretable models (Lime), combined with the techniques for the results' profiling, also allow to overcome the limits of interpretability and to encourage their application also in the regulatory area.

 

                                                                    Interested in this paper?
                                                                          Buy the issue