: Identifying which prospects are most likely to respond profitably.
Thomas begins by demystifying the concept. Credit scoring is defined not merely as a statistical exercise, but as a risk management tool that quantifies the likelihood that a borrower will become delinquent or default. The book highlights the shift from subjective human judgment (character-based lending) to objective, data-driven decision-making. credit scoring and its applications by l c thomas hot
The 2017 edition predates the explosion of “algorithmic fairness” in finance (Hardt et al., 2016; Corbett-Davies & Goel, 2018). This is now a gap. : Identifying which prospects are most likely to