larry chiang federal reserve bank credit scorecard matrix credit to debit reporting

Larry Chiang

Bad News

The Supermodel

is male and his

name is . . .

Larry Chiang

B I O

Thin File Analysis

Open-sourced decision-making model

developed by the Supermodel,Larry Chiang

IT’S FREE

Scorecard Matrix

An additional axis (epsilon) is compiled from credit application information

The “f” function has credit applicant information

F (α, β, ⱱ)

Є (d, z, 0)

Define Risk

By adjusting the slope “P”, you define your risk appetite

Slope P

Є

ƒ

When p=0 Є not a factorWhen p is , Є is ONLY factor

Case Study to Determine Risk

By adjusting the slope “P”, you define your risk appetite

Less risk (higher up “ƒ” axis)

Є

ƒ

More risk

1. Focus mainly on “ƒ”2. Focus is on “Є”3. Є not a factor – simple old system4. Pure Є function

Є

ƒ

Case Study – Which to Weigh More-- ƒ? Or “epsilon”?

(4)

(1)

(2)

(3)

Once Risk Is Selected

Є

ƒ

A

B

C

Multiple ScorecardScenario

SingleScorecardScenario

Є

ƒ

B

Scorecard Matrix/Credit Line Matrix

ƒ

Establish multiple points for wide range of credit

lines

ƒ

Add another dimension!

3-D ScorecardMatrix

ƒll

ƒll breaks out scorecard factors from ƒ

Є

Є

Risk Selection

Goes from a simple slope to an

entire plane

ƒ

Є

ƒll

Risk Plane

Select pointswithin plane!

China Debit Reporting Analysis

Debit Decision-Making

Model developed by the

Supermodel,Larry Chiang

Supply Vs. Demand

I argue that supply is related to demand

Oren Michels, CEO MasheryLarry Chiang, CEO Duck9

Pete Cashmore, Founder Mashable

Rates

The higher the supply of banks in competition for consumers, the more competitive the

interest rate, junk fees, etc.

Larry ChiangElectronic Credit Score Protection Bill/Act

Credit disputes via email, web & fax should have the same weight as a letter

mailed via the Post Office.