learning and credit risk analytic
Machine Learning and Credit Risk Analytics
In the last few years, new statistical algorithms have become very popular. Traditional scorecards were based on one decision tree, or "logistic regression." The newer algorithms represent a combination of hundreds of decision trees instead of one single tree. These algorithms also provide much more accurate predictions compared to traditional methods. The current hype around machine learning methods typically revolves around these algorithms in particular: random forests, XgBoost, and deep learning.