Why should we monitor and verify the credit scoring model after it is implemented? The introduction is as follows:

After the credit scoring model is implemented, it is crucial to monitor and verify it. First of all, models are just a means for us to solve problems, and solving business problems is our purpose. Therefore, it is necessary to ensure that the model can achieve the expected results in practical applications.

Before the model is put into actual use, it is necessary to evaluate its predictive ability, which is also the core purpose of validating and testing the model. For example, most of the scores we usually come into contact with are used for credit approval, that is, applying for a score card (A card). At the same time, there are B card (Behavior scorecard) and C card (Collection scorecard), which are used for post-loan management and collection management respectively. These different application scenarios require models that can accurately identify and assess risks.

In order to ensure the accuracy and stability of the model, we will use a variety of inspection methods and standards, such as K-S index, exchange curve, AR value, Gini number, etc. For example, the K-S indicator is used to measure whether the verification results are better than the expected value. The specific standard is: if K-S is greater than 40%, the model has a good prediction function and the developed model has successful application value.

In general, the monitoring and verification of credit scoring models can not only ensure their accuracy and stability in actual application scenarios, but also provide financial institutions with more accurate and objective risk assessments. tools to better serve customers and society.

What is a credit scoring model?

The credit scoring model is a model for delineating personal financial authority that has emerged in recent years to ensure the financial security of banks and other financial sectors.

This model refers to using a certain credit scoring model based on the customer's credit history information to obtain credit scores of different levels. Based on the customer's credit score, the amount of money that the customer can hold is determined. , thereby ensuring the safety of repayment and other services. As loans and credit cards play an increasingly prominent role in modern society and companies, the development prospects of credit scoring models are immeasurable.