Posts with keyword: credit

1 entries

Algorithmic Authorizations

Tue Jan 17 06:40:00 2006

Yesterday I was reading Seeing What's Next: Using Theories of Innovation to Predict Industry Change by Clayton M. Christensen, Erik A. Roth and Scott D. Anthony and came across a story about how credit scoring changed the loan industry: In 1956, Fair, Issac created a standard predictive risk-assessment tool. It dramatically simplified the process of judging creditworthiness with a statistical methodology that plugged variables from an applicants credit history into an algorithmic formula that produced a score. Credit scoring's robust, scientifically based, quick assessment enabled a broader population of less-skilled people to make lending decisions. It occurred to me
Continue reading {Algorithmic Authorizations}