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FICO is running a competition with Google to fix how credit is granted

Regular Contributor

FICO is running a competition with Google to fix how credit is granted

OK y'all, just what in the heck does this tell us about the future of credit scoring?  This is at the very least, very interesting and raises the possibility of having a direct effect upon each and every one of us trying to improve our creditworthiness...good?  Bad?  YMMV...

 

PLEASE click on the link to read the entire article... I'll just hang up and listen...

 

Per CROWDSOURCED CREDIT:

 

"FICO, the credit rating firm central to Americans’ financial lives, is asking for help.

 

The company announced yesterday (Dec. 7) the Explainable Machine Learning Challenge, a call for AI developers to take a portion of the company’s data and build a new, more transparent algorithm to predict whether customers would be able to repay a line of credit up to $150,000. The challenge is in partnership with Google, University of Oxford, Imperial College London, MIT, UC Berkeley, and UC Irvine.

 

Representatives from FICO stress that the challenge isn’t to replace the algorithm that the agency uses or imply it’s broken, but instead generate new ideas for how decisions by deep learning algorithms can be explained. Ostensibly, the firm would then use any worthwhile ideas from the competition.

 

To help developers, FICO is releasing an entirely new trove of data, called the Home Equity Line of Credit (HELOC) dataset. It includes real, anonymized HELOC applications requesting lines of credit ranging from $5,000 to $150,000, as well as ancillary data like available collateral. From this data, FICO is asking developers to generate a risk score: What’s the probability someone will fail to make a payment over 24 months?" ......

 

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Message 1 of 5
4 REPLIES
Super Contributor

Re: FICO is running a competition with Google to fix how credit is granted

LOL no AI program in the world can predict if I will go rogue and do an app spree and never pay my bills again, get fired from my job, loose all my money for any one of many reasons, ID theft, etc.  Let them use AI in a FICO FPS game to make boss monsters and BOTs and NPCs.  Here's an AI result - take a loan shark approach to paying bills and see the results.  IMHO late payments would go down.

 

I'll pass on this idea.

06/13/2018: FICO 821 EQ 814 TU 808 EX
Message 2 of 5
Senior Contributor

Re: FICO is running a competition with Google to fix how credit is granted

Darn you beat me to it lol!
EQ 730, TU 730, EX 720. INQs EQ-1, TU-9, EX-7 AAOA 4yrs Util 6% Inspiration: Themanwhocan's Cash Back Charts
Message 3 of 5
Frequent Contributor

Re: FICO is running a competition with Google to fix how credit is granted


marty56 wrote:

LOL no AI program in the world can predict if I will go rogue and do an app spree and never pay my bills again, get fired from my job, loose all my money for any one of many reasons, ID theft, etc...


Smiley Wink  They just might if you've ducked behind that proverbial barrel three times in a row after hitting the F5 key.

 

Gamer here... apologize in advance for the above nerdspeak, but good AI (which is sadly lacking) can and often does anticipate my next possible move based entirely on what I've done before.

 

Applying this to determining how credit-worthy a person may be in the future to me has validity. Nothing will ever be 100% accurate, but I do believe we all are capable of being 'predicted' since we ourselves most often determine what 'we do next' based on what 'we've done in the past'. 

 

Interesting times ahead me thinks...Smiley Happy

Message 4 of 5
Member

Re: FICO is running a competition with Google to fix how credit is granted

The idea that 1 of every 10,000 ppl will go rogue isn't a reason for the other 9,999 people to be underserved. Everyone hates analytics until they can use a GPS in their car get packages in 1 or 2 days or catch an airplane without 7 hour layovers consistently or get a credit card, mortgage etc.
Message 5 of 5