introducing archetype - jaywing...4. build your model click a button to create your first model....

The Artificial Intelligence-based predictive modelling software

Introducing

Archetype

Transform your credit and fraud

risk models

2

Archetype is our multi-award-winning, Artificial Intelligence (AI) based modelling software for advanced predictive modelling.

Archetype uses deep neural networks to squeeze vastly more insight out of your data than traditional techniques, thus creating more accurate credit risk and fraud models. And it does this using patent-pending mathematical techniques which enable the user to control the model and explain the outcome. This groundbreaking use of explainable AI ensures that your models adhere to the same intuitive rules that you would expect of a traditional scorecard, but delivers far more powerful results.

Archetype’s predictive models have generated up to 18% uplifts, compared to traditionally-built models (using the same data).

It doesn’t mean embarking on a major project and there’s no need to massively upskill. Archetype can integrate neatly into your existing scoring and modelling processes, is easily managed and continually improving.

• Increased profitability through the potential to make significant savings by reducing risk

• Maximised income through better outcomes for the end customer.

Archetype enables models to be ‘always-optimal’ or redeveloped the moment they deteriorate without incurring the costs typically associated with model development. What’s more, model governance is built into the process up front, ensuring the models you create are always in line with the expectations of your business.

3AI-based predictive modelling software

Enter this link in your web browser to watch the video: https://bit.ly/2XrbanT

Interpretable.Controllable.Built withexplainable AI


https://bit.ly/2XrbanT

Award winning

WinnerTechnology Team of the year

WinnerBest use of Predictive/ Prescriptive analytics

AI-based predictive modelling software 5

Solve the ‘black-box’ problem Explainable and controllable models that are underpinned by a unique mathematical approach that retains an intuitive link between input variables and the modelled output, with no loss of predictive power – this is patent-pending technology.

Enhance predictive power Proven uplifts in model performance of up to 18%, measured by Gini uplift. This is genuine AI-based modelling, using deep neural networks to generate the best possible model

Increased efficiency Models developed in a fraction of the time and an intuitive interface makes the process logical, simple to learn and easily repeatable. It doesn’t require specialist knowledge of machine learning or AI.


Optimally performing predictive models

18% Gini uplift


We have a number of ways of demonstrating the benefits of using Archetype, with a range of engagement models from licencing individual models, or using our consultancy service through to a full enterprise software licence. We like to start with a proof of concept to give you an indication of the benefits.

If you take the software, here’s how you’d get started, using your own file of development data as a starting point:

1. Secure Access We’ll grant access to Archetype through our securely hosted service. It’s browser-based, so we can get you and your team up and running quickly.

2. Set up your first project Upload your data, give the system some basic information about the outcome you’re modelling, and the system will give you a set of recommendations about which fields to include.

3. Refine the data By importing definitions, creating groups and defining how data should behave within the model. Then use Archetype’s tools to hone in on the fields you want to use.

4. Build your model Click a button to create your first model. Choose how the neural network should run. Depending on size and complexity, it should all be finished in under half an hour.

5. Review the results The outputs and insight from the models include five different types of modelling charts.

Getting started with Archetype


1. Overall model performance Gini/R-squared Curve or scatter point

2. Individual variable performance How does each variable perform on average, in relation to the outcome?

Five chart types to explain your model


3. Impact charts How does each variable contribute to the model, assuming all else is equal?

5. Marginal variable importance Which variables could add even more power to the model?

4. Feature importance The relative importance of each variable within your model.

Publish and use your model After a few iterations, once you’re happy with the final model, you can publish it, saving the finalised results and all associated charts and documentation. Models are then executed in live either by:

(a) deployment of model code (which Archetype generates) in your own decision system

(b) via an API which can be called on demand by you

(c) via a data file uploaded through Archetype’s web interface.


Get started in minutes

Intuitive and rapid

Little statistics

experience needed

Browser-based and securely hosted

by Jaywing.

1. Upload your data

2. Define data requirements

3. Click

Understand your data, not the machine

learning process.

AI-based predictive modelling software

The freedom to be creative

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We’re confident you’ll see a significant uplift in performance using Archetype.

Arrange a free trial:Call our risk specialists on 0333 370 6600 or email [email protected]

Or, check-out the next few pages to see how your peers are using it now.

Request a free demo or data evaluation

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Virgin Money tests Jaywing AI technology to enhance risk models ThenVirgin Money recently worked with data science expert, Jaywing, to deploy Artificial Intelligence (AI) tests through the use of its AI product, Archetype in its credit card business. AI modelling enables Virgin Money to gain a deeper understanding of its customers, so that it can further improve the customer experience and enhance risk modelling.

AI is driving the future of financial services marketing. Some of the most exciting and effective uses of AI in financial services include process automation, predictive modelling and customer service applications.

Now

Through Jaywing, Virgin Money is able to identify which customers are most likely to consider switching credit card provider with more accuracy than ever before. This enables the bank to tailor marketing and promotional offers based on individual customer circumstances, improving the customer experience and reducing the likelihood of customers deciding to switch providers.

Compared with existing models (built on the same data sample), Archetype delivered a double-digit improvement in the ability to predict customers most likely to leave.

Jaywing also ran a proof of concept to demonstrate the potential of Archetype’s AI capabilities to enhance credit risk models. Virgin Money has built a high-quality credit card book with the existing scorecard approach. Running alongside this traditional risk model, the Archetype model combined internal data and bureau information to demonstrate the potential for AI to even more accurately assess credit risk and predict low risk applications. More precise profiling of applications provides the ability to make even more accurate lending decisions, with the potential to reduce bad debt while taking on more customers.

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Achieving an 18% uplift in risk model performance ThenNewcastle Building Society recently undertook some enhancements of its customer risk scores and wanted to understand whether applying AI-based techniques to mortgage risk modelling could yield additional benefits. That’s why it appointed Jaywing, with its considerable experience both in traditional and AI risk modelling.

Now

Jaywing took Newcastle Building Society’s existing scorecard development samples for both Buy to Let and residential mortgages, using Archetype to create the models from scratch in just a few hours.

Archetype is unique because it enables the analyst to control and explain the model, ensuring that it adheres to exactly the same business rules as their traditional risk models. This guarantees a model which will always generate a result that is acceptable to the business. The methodology used by Archetype generates more predictive models, enabling its users to get better at identifying risk or fraud cases, to identify customers at risk of leaving for other providers, or even, to make better marketing offers.

Using exactly the same data, Archetype was able to generate an uplift of over 18% on Newcastle Building Society’s Buy to Let bureau-devised model, and over 4% on the residential model. In both cases, these comparisons are with an optimal, traditionally-generated model using the same source and outcome data. This equates to a huge improvement in the lender’s ability to identify risk, resulting in a bad debt reduction for the same level of rejects.

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Explores ‘explainable’ AI-driven application scoring ThenNationwide was seeking to boost the performance of the application risk models it uses to approve existing customers for unsecured loans. Recognising industry concerns around the transparency of some AI-based modelling techniques, it wanted to understand how Archetype, Jaywing’s proprietary AI-based modelling software, performed compared to other approaches.

Now

Assessing the performance of Archetype against traditional linear regression showed that Archetype was able to generate a 6% uplift in the predictive power of the model, offering huge potential for reductions in bad debt or an increase in acceptance rates. The results were comparable with other AI-based modelling approaches, and the Archetype models were backed by Jaywing’s ability to control the neural network and explain the resulting model.

Commenting on the results, Matthew Jones, Head of Retail Modelling at Nationwide said: “Archetype clearly represents a powerful alternative in building credit scores. We were impressed by the ease of use, the rapidly-realised benefits and ability to enforce intuitive behaviour on key variables in neural networks. Jaywing’s approach and depth of knowledge has made us confident that the use of neural networks and similar technologies has reached a level of maturity where it can be deployed safely within the credit risk arena.”

As Archetype offers the analyst control over how the input variables are used, automatically producing charts and outputs which explain how the model behaves, it was easy for Jaywing to provide Nationwide a view of the most influential variables in the model and demonstrate how each data input had contributed to the overall performance. And with governance taking a key role in the design of the models, Archetype enables lenders to deploy better, compliant models, more frequently, and with less effort.

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Improving application credit scores through AI technology ThenHitachi Capital Consumer Finance wanted to understand the uplifts that may be possible through using a deep learning approach. The Consumer Finance division appointed Jaywing to explore the potential to significantly improve its existing application credit scores using Jaywing’s AI modelling technology, Archetype.

Now

Jaywing processed data from Hitachi’s recent scorecard development using Archetype to replace the traditional modelling steps. Using the software, Jaywing was able to apply appropriate constraints which reflected how Hitachi’s modellers would apply common sense rules to the inputs. These rules meant that the system would only generate model outputs adhering to Hitachi’s expectations, making models explainable to regulators and customers alike – a key differentiator compared to other Neural Network-based approaches.

Using exactly the same data, Archetype demonstrated an impressive uplift of 7.2% compared to an optimum linear regression model, showing that the Archetype model had the potential to predict and prevent more bad debt or to increase the number of customers taken on without increasing bad debt levels. On a smaller sub-prime portfolio, an uplift of 11% was seen, from a lower baseline.

Hitachi Capital

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Jaywing is a major data science-led UK agency. We employ around 700 specialists in marketing, customer management and credit and fraud risk regulation and management.One in 10 is a heavyweight data scientist. We are dedicated to our collaborative approach that brings hand-picked teams of specialists to each client challenge across a host of sectors to connect powerful ideas, rich data and new technologies.

In the last two decades, we have supported over 25 lenders in the UK with risk modelling and analysis, including Lloyds Banking Group, Royal Bank of Scotland, Nationwide, Secure Trust Bank, Shawbrook Bank, Paragon Bank and Coventry, Skipton, West Bromwich, Newcastle and Nottingham Building societies.

About Jaywing


More from

Jaywing

Visit risk.jaywing.com

Or email [email protected] for more information.

Archetype FAQs for more technical detail

New AI mini guide for best practice guidance with AI

AI Website ai.jaywing.com


Martin SmithHead of Product Development

[email protected]

Elliot PoynterHead of Commercial Engagement

07715 [email protected]

NEWBURY

Albion House27 Oxford StreetNewbury RG14 1JG

LEEDS

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JAYWING PLC is registered in England and Wales. Albert Works, 71 Sidney Street, Sheffield S1 4RG. Company number 05935923.

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introducing archetype - jaywing...4. build your model click a button to create your first model....

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