Model conversion webcast series gets more sophisticated

Model Conversion Webcast series gets more sophisticated

Date: June 24, 2020

VantageScore Solutions continues its model conversion and implementation webcast series with a new installment focusing on model implementation and on making the case for upgrading to a new credit score model.

Part 2 of the Credit Score Model Conversion and Implementation Webcast series builds on the first installment, covering a more complex model implementation strategy. The series is geared toward credit policy professionals, risk analysts, marketing and acquisition specialists, compliance officers, and other senior managers who seek to take advantage of advances in credit scoring and decision analytics.

Presented by Sarah Davies, VantageScore Solutions’ senior vice president for analytics, research and project management, the latest webcast helps viewers understand trade-offs between risk and volume trade when determining score cut-offs with a new scoring model.

The webcast covers score mapping, testing, and monitoring when implementing a new credit score model. This installment focuses on how to manage credit score cut-offs while maintaining consistent or optimal default rates and approval volumes.

Davies shows webcast viewers relatively simple swap-set testing strategies that can reveal the risk profile of populations that may have been declined under an older credit score model, but are accepted when a credit score model, developed on post-recession data is adopted.

The webcast also focuses on downstream considerations.

“A thorough review of the new population provided as a result of the new model really does need to be undertaken with all the appropriate downstream functions,” Davies said.

Typically lenders implement a new model after consumer behaviors shift and the incumbent model loses predictive strength. This webcast includes a look at how regional loan origination trends changed before, during and after the recession.

Nick Rose, senior scientist at VantageScore Solutions, in a webcast titled “Origination Trends Over the Recession,” walks viewers through how loan origination trends differed throughout regions of the country that were impacted to varying degrees by unemployment.

For example, unemployment in the Northeast was relatively mild compared with other regions of the country. Accordingly, bankcard originations trended upwards. In the South, by contrast, unemployment was high and as a result, the recovery was also more significant as the recovery has been gaining momentum. As the recovery took effect, auto originations trended upwards.

“In hindsight this makes sense,” Rose said. “The Northeast’s economy didn’t take the same huge hit that other regions did, so consumers were more actively engaged in obtaining new credit. Looking ahead, if employment continues to improve in regions like the South and West, we should see increases in bankcard originations.”

To watch these videos, and earlier installments in the webcast series, visit VantageScore.com/ModelConversion, where you also can submit questions on model conversion and implementation to VantageScore scientists. Questions will be considered as the basis for future videos.