Larry Chiang Federal Reserve Bank Credit Scorecard Matrix Credit To Debit Reporting

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Larry Chiang Federal Reserve Bank Credit Scorecard Matrix Credit To Debit Reporting

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

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