The IIF’s recent Machine Learning in Credit Risk 2nd Edition Report tracks the industry’s progress with exploring and implementing these technologies, in applications such as credit decisioning and the monitoring of deteriorating credits. 60 firms (59 banks and 1 mortgage insurer) participated in a detailed survey examining the maturity, areas of application, benefits and challenges.

Leading contributor Paul Edwards (Scotiabank) joins IIF report authors Brad Carr and Natalia Bailey to discuss the report’s key findings, including the growing adoption across the industry, the expansion of application in the SME customer segment, and the specific techniques most commonly applied. We also discuss the evolution of supervisory oversight and scrutiny, which emerged as a growing theme in the report. While the distribution of the full detailed report is limited to the 60 participant firms and the regulatory community, a summary version of the Machine Learning in Credit Risk 2nd Edition Report is available here. 

Looking ahead on FRT, we will have further discussions on Facebook’s Libra digital currency initiative, and Michael Brett of Qx Branch will join us to discuss developments in Quantum Computing.

Previous FRT episodes can be found on iTunes or Apple Podcast, Google Play, Spotify, SoundCloud and the IIF website, including:

TechSprint Takeaways with Jo Ann Barefoot

Libra and Beyond with Professor Chris Brummer

Digital Currencies and 'cashless' with Riksbank Governor Stefan Ingves

Open Banking and Sweden’s cashless economy with SEB CEO Johan Torgeby

Our special Japanese language edition is exclusively available on the IIF website.