larry chiang federal reserve bank credit scorecard matrix credit to debit reporting
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Larry Chiang
Bad News
The Supermodel
is male and his
name is . . .
Larry Chiang
B I O
Thin File Analysis
Open-sourced decision-making model
developed by the Supermodel,Larry Chiang
IT’S FREE
Scorecard Matrix
An additional axis (epsilon) is compiled from credit application information
The “f” function has credit applicant information
F (α, β, ⱱ)
Є (d, z, 0)
Define Risk
By adjusting the slope “P”, you define your risk appetite
Slope P
Є
ƒ
When p=0 Є not a factorWhen p is , Є is ONLY factor
Case Study to Determine Risk
By adjusting the slope “P”, you define your risk appetite
Less risk (higher up “ƒ” axis)
Є
ƒ
More risk
1. Focus mainly on “ƒ”2. Focus is on “Є”3. Є not a factor – simple old system4. Pure Є function
Є
ƒ
Case Study – Which to Weigh More-- ƒ? Or “epsilon”?
(4)
(1)
(2)
(3)
Once Risk Is Selected
Є
ƒ
A
B
C
Multiple ScorecardScenario
SingleScorecardScenario
Є
ƒ
B
Scorecard Matrix/Credit Line Matrix
ƒ
Establish multiple points for wide range of credit
lines
ƒ
Add another dimension!
3-D ScorecardMatrix
ƒll
ƒll breaks out scorecard factors from ƒ
Є
Є
Risk Selection
Goes from a simple slope to an
entire plane
ƒ
Є
ƒll
Risk Plane
Select pointswithin plane!
China Debit Reporting Analysis
Debit Decision-Making
Model developed by the
Supermodel,Larry Chiang
Supply Vs. Demand
I argue that supply is related to demand
Oren Michels, CEO MasheryLarry Chiang, CEO Duck9
Pete Cashmore, Founder Mashable
Rates
The higher the supply of banks in competition for consumers, the more competitive the
interest rate, junk fees, etc.
Larry ChiangElectronic Credit Score Protection Bill/Act
Credit disputes via email, web & fax should have the same weight as a letter
mailed via the Post Office.