BBitMonkey AI
P06Applied Prediction and Automation

Expanded Package

Credit risk prediction

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The case

Sahyog Cooperative Bank in Nashik took 9,195 loan applications last year, approved 62.5% of them and lost money on 14% of those. The board wants to lend to more people without losing more money. The bank has repayment records for the loans it made - and nothing at all for the 3,444 it refused.

What is in it

  • 13 teaching steps, one animation each
  • 26 labs, checked live against the case data
  • 65 step questions, every option explained
  • 20 final paper questions, marked on submission

The steps

  1. 1Two ways to lose money
  2. 2What counts as default?
  3. 3The book you can see
  4. 4Columns you have on the morning of the decision 2 labs
  5. 5The columns a lender may not use
  6. 6The 236 loans the bank made on purpose
  7. 7Train on the first half, test on the second
  8. 8From probability to points
  9. 9Reading the scorecard
  10. 10Where to draw the line
  11. 11Lending to the people you used to refuse
  12. 12Watching it after it goes live
  13. 13Fair lending