Machine learning is proven to yield better underwriting results and mitigate bias in lending. But not all machine learning techniques, including the wide swath at work in unregulated uses, is built to be transparent. Many of the algorithms that get deployed generate results that are difficult to explain. Recently, researchers have proposed novel and powerful methods for explaining machine learning models, notably Shapley Additive Explanations (SHAP Explainers) and Integrated Gradients (IG). These methods provide mechanisms for assigning credit to the data variables used by a model to generate a score.

Machine learning is proven to yield better underwriting results and mitigate bias in lending. But not all machine learning techniques, including the wide swath at work in unregulated uses, is built to be transparent. Many of the algorithms that get deployed generate results that are difficult to explain. Recently, researchers have proposed novel and powerful methods for explaining machine learning models, notably Shapley Additive Explanations (SHAP Explainers) and Integrated Gradients (IG). These methods provide mechanisms for assigning credit to the data variables used by a model to generate a score.