This session was recorded in San Francisco on February 5th, 2019 and can be viewed here: https://youtu.be/LUwMtXM2q88 In the current world of data science there many available data sources, big data platforms, and advanced Machine Learning and AI based technologies available. It has become easier and easier to derive predictive value in an efficient and streamlined way and lose sight of objectives especially in the business world. This session will focus on not losing the business context and objective as the navigator for these powerful tools we have at our disposal. Through this discussion, I will review a path towards how to use the tools like explainable and driverless AI to your advantage versus letting the tools set the direction. Bio: At Equifax, Tom leads the Data and Analytics consulting practice. Previously, Tom was the US Consumer and Commercial Data Sciences Leader. Tom joined Equifax in July of 2009. He brings several years of analytical experience in leading teams on statistical modeling engagements, analysis and consultation across several verticals including telecommunications, lending, mortgage, automotive, and marketing. Prior to Equifax, Tom was a data science manager at Experian and a Risk Modeler/Manager at American General Finance (now OneMain Financial). Tom holds a Master of Science in Applied Statistics from Purdue University, and a Bachelor of Science degree in Mathematics with a concentration in Statistics, also from Purdue University.

1. Configurable Modeling for
Maximizing Business Value
Tom Aliff
SVP – Data and Analytics Consulting
Equifax
https://www.linkedin.com/in/tomaliff
#H2OWORLD

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WALK TRANSIT DRIVE

3. 3
OR…DRIVE TO
THE AIRPORT
…AND FLY
You need a
destination and an
understanding of
available resources
and approaches to
be most successful
in your journey.

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Equifax:
Original
BIG
DATA
Company
820,000,000
consumers
7,000+
employer contributors
91,000,000
businesses
$3.4B
Global Information
Solutions Company
10,000
Employees
1899
Company Founded
24
Countries

5. 5
Data and Analytics Innovation at Equifax
CONFIGURABLE
INSIGHTS
ADVANCED ANALYTICS DATA

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Equifax Ignite Direct
Self Serve Insight Generation
Equifax Ignite Solutions Equifax Ignite Marketplace
App Driven Insight Consumption
CAMBRIAN
enables
CONFIGURABLE
MODELS and SCORES
delivered through
Equifax Ignite
TM

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Trends and Objectives Set the Course
Data
Selection
Equifax data
3rd party
data
Customer
data
Model
Development
Linear and Logistic Regression
Neural Network /GBM
Objective
identification
Building blocks to
solve the objective
Modeling
and AI
Market
Intelligence

8. 8
Ignite Marketplace: Online Finance Market Trends
Online lender share of personal loans by
• Origination risk score
• Loan amount
• Terms
Score migration post-origination by lender type

9. 9
NeuroDecision® Technology (NDT):
Monotonic Neural Networks
All credit scoring systems must Adhere to
FCRA, ECOA, SCRA, & FHA as it applies
Optimally constrain a multiple hidden
layer Neural Network (NN) to be
monotonic.
Demonstrably superior to logistic
regression
Produces a score and logical reason codes
by enforcing monotonicity
https://www.youtube.com/watch?v=HxDHis4btg0

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Commercial Loan Approvals with Trended Data and NDT
increase markedly
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%
CumulativeBadRate%
Cumulative % of Population
Incremental Approval Rate at 0.6% Bad Rate
Baseline Model
TD24M
TD84M
NDT_TD84M
21% higher
approval
rates

11. Trended commercial and consumer data with NDT
increases KS by 13.6%
11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Baseline Models TD24 Models TD84 Models NDT-TD84 Models
%ofAttributes
Trended Consumer and
Commercial
Static Consumer and
Commercial
KS = 51.3 KS = 54.1 KS = 57.0KS = 50.9

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• 8-13% more accounts approved without increasing losses

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18. R&D to Production Integration to enable feedback
analytics
18
Model
Development
LinearandLogisticsRegression
H2O,SAS,R,Python
MachineLearning
Attribute
Development
Numberof60dayspast
due
%ofSatisfactoryTrade
Number
of
Trades
OpenTrades
Execute Attributes and Models
Select Data
Sources
Data Wrangling
Equifax data
3rd party
data Customer
data
30 DAYS6-9 MONTHS
R&D ENVIRONMENT
Attribute Dev
PRODUCTION SYSTEM
Data Wrangling
Production
Model Dev
Development
Deployment