Decentralising Personal Credit Score

2022 ◽  
pp. 31-42
Author(s):  
Imbert Theadore ◽  
Paul Jek Sitoh
Keyword(s):  
Credit Score ◽  
Personal Credit ◽  
On Demand ◽  
Current Process ◽  
Credit Scores

The current process of securing a loan involves a cumbersome know-your-customer (KYC) process. The process also raises a question about the ownership of credit scores. In this chapter, the authors propose a solution based on a combination of decentralized identifier (DID) W3C blockchain and cryptographic wallet to make it possible to make credit scores possible. A decentralized identifier to enable a loan applicant to assert who he/she is without relying on a centralized identity issuer is key to enabling loan applicants to own his/her own credit score. The use of blockchain is to enable loan applicants to have his/her identity recorded immutably on a store that is trusted by all parties. Finally, the use of a cryptographic wallet is to enable loan applicants to assert identities on demand and prove his/her assertion.

scholarly journals Palate: The App for Finding Restaurant Faster

2021 ◽  
Author(s):  
Patrick Gioseffi
Keyword(s):  
Mobile Application ◽  
Early Stage ◽  
Design Principles ◽  
Major Research ◽  
Research Project ◽  
On Demand ◽  
Current Process ◽  
The Moment ◽  
The Impact

This Major Research Project (MRP) aims to investigate the impact of the on-demand economy, millennials’ digital habits, and the emergence of super apps on the restaurant-finding process. Currently, restaurant-goers are presented with multiple specialty applications to complete different tasks when evaluating restaurants. The current process of deciding on a restaurant is both time-consuming and inefficient. This project aims to propose a solution to this problem in the form of an early-stage super app called Palate. Palate is a mobile application that aims to streamline the process of discovering restaurants from the moment a restaurant-goer begins their search to the moment they confirm a reservation. This paper will discuss design principles, theories of the on-demand economy, restaurant-goers digital habits, super apps and the rationale for designing a restaurant super app interface.

scholarly journals Using Credit Scores to Predict and Analyze Areas of Gentrification and Urban Development in Toronto, Canada - a Geo-Spatial Approach

2021 ◽  
Author(s):  
Nicholas Pulsone ◽  
Brian Ceh
Keyword(s):  
Spatial Analysis ◽  
Urban Development ◽  
Well Being ◽  
Development Zone ◽  
Credit Score ◽  
Spatial Approach ◽  
Credit Scores ◽  
The City ◽  
Analytical Frameworks ◽  
Regent Park

This study examines the use of financial well-being indicators such as credit scores to identify gentrification. This study is a response to the redevelopment of neighbourhoods in the City of Toronto through gentrification. This study also explores both theoretical and analytical frameworks outlined in literature to identify correlations between financial wellbeing indicators and gentrification. Comparing the observations in this study to areas experience gentrification such as Regent Park revealed large implications that gentrification is largely associated with financial wellbeing. The study also found that the average credit scores in the City of Toronto seem to be increasing. The analysis determined that the credit score changes reflected the development in the Regent Park development zone. Key words: Gentrification, credit scores, spatial analysis, urban development

Consumer marketplace lending in Australia: Credit scores and loan funding success

2019 ◽  
Vol 45 (4) ◽  
pp. 607-623
Author(s):  
Andrew Grant ◽  
Luke Deer
Keyword(s):  
Decision Tree ◽  
Decision Process ◽  
Jel Classification ◽  
Third Party ◽  
Credit Score ◽  
Second Stage ◽  
Funding Success ◽  
Credit Scores ◽  
Unique Dataset

This article examines borrower acceptance in consumer marketplace lending using a unique dataset from the largest platform in Australia, Society One. Applications are initially filtered through an automated decision tree based on a third-party Veda (Equifax) credit score. At the second stage of assessment, loan applications are underwritten by the platform before being offered to sophisticated investors for purchase. The platform accepts around 11% of completed applications, with around 55% declined by an automated decision process and the remaining 34% by the manual underwriting process. More than 80% of purchased loans were made to borrowers with credit scores classed as ‘Good’, ‘Very Good’ or ‘Excellent’ (the threshold for ‘Good’ being a score of 622). However, underwriters decline around two-thirds of these higher credit score applicants, showing the importance of the underwriting process to the platform’s growth. JEL Classification: G21, G23, D14, D45, D82

scholarly journals Determining the Credit Score and Credit Rating of Firms using the Combination of KMV-Merton Model and Financial Ratios

2021 ◽  
Vol 6 (3) ◽  
pp. 105-112
Author(s):  
Norliza Muhamad Yusof ◽  
Iman Qamalia Alias ◽  
Ainee Jahirah Md Kassim ◽  
Farah Liyana Natasha Mohd Zaidi
Keyword(s):  
Credit Risk ◽  
Credit Rating ◽  
Credit Ratings ◽  
Credit Scoring ◽  
Financial Ratios ◽  
Credit Score ◽  
Merton Model ◽  
Medium Level ◽  
Credit Scores ◽  
Risk Managers

Credit risk management has become a must in this era due to the increase in the number of businesses defaulting. Building upon the legacy of Kealhofer, McQuown, and Vasicek (KMV), a mathematical model is introduced based on Merton model called KMV-Merton model to predict the credit risk of firms. The KMV-Merton model is commonly used in previous default studies but is said to be lacking in necessary detail. Hence, this study aims to combine the KMV-Merton model with the financial ratios to determine the firms’ credit scores and ratings. Based on the sample data of four firms, the KMV-Merton model is used to estimate the default probabilities. The data is also used to estimate the firms’ liquidity, solvency, indebtedness, return on asset (ROA), and interest coverage. According to the weightages established in this analysis, scores were assigned based on those estimates to calculate the total credit score. The firms were then given a rating based on their respective credit score. The credit ratings are compared to the real credit ratings rated by Malaysian Rating Corporation Berhad (MARC). According to the comparison, three of the four companies have credit scores that are comparable to MARC’s. Two A-rated firms and one D-rated firm have the same ratings. The other receives a C instead of a B. This shows that the credit scoring technique used can grade the low and the high credit risk firms, but not strictly for a firm with a medium level of credit risk. Although research on credit scoring have been done previously, the combination of KMV-Merton model and financial ratios in one credit scoring model based on the calculated weightages gives new branch to the current studies. In practice, this study aids risk managers, bankers, and investors in making wise decisions through a smooth and persuasive process of monitoring firms’ credit risk.

scholarly journals Financial Education versus Costly Counseling: How to Dissuade Borrowers from Choosing Risky Mortgages?

2020 ◽  
Vol 12 (1) ◽  
pp. 1-32
Author(s):  
Sumit Agarwal ◽  
Gene Amromin ◽  
Itzhak Ben-David ◽  
Souphala Chomsisengphet ◽  
Douglas D. Evanoff
Keyword(s):  
High Risk ◽  
Consumer Choice ◽  
Financial Education ◽  
Third Party ◽  
Credit Score ◽  
Contract Choice ◽  
Credit Scores

This paper explores the effects of mandatory third-party review of mortgage contracts on consumer choice. The study is based on a legislative pilot carried out in Illinois in 2006, under which mortgage counseling was triggered by applicant credit scores or by their choice of “risky mortgages.” Low-credit score applicants for whom counselor review was mandatory did not materially alter their contract choice. Conversely, higher credit score applicants who could avoid counseling by choosing nonrisky mortgages did so, decreasing their propensity for high-risk contracts between 10 and 40 percent. In the event, one of the key goals of the legislation—curtailment of high-risk mortgage products—was only achieved among the population that was not counseled. (JEL D14, D18, G21, R21)

scholarly journals DEVELOPMENT OF SIMPLE, EASY AND INEXPENSIVE ONLINE SYSTEM FOR LIST OF PROPOSAL ASSESSMENT CREDIT SCORE OF WIDYAISWARA

2020 ◽  
Vol 13 (2) ◽  
pp. 41-49
Author(s):  
Sri Mahendra Satria Wirawan
Keyword(s):  
System Application ◽  
Environmentally Friendly ◽  
Alternative Solution ◽  
Waste Generation ◽  
Microsoft Excel ◽  
Credit Score ◽  
Online System ◽  
Current Process ◽  
Development Costs ◽  
Calculation System

The current process of proposing and calculating credit number for Widyaiswara is felt to require an exceedingly difficult effort. Many costs must be incurred, especially to hold office stationery such as printing equipment, paper, ink, binder clips, and others. The next issue is how to provide a relatively large number of proposal files and a place for verification and evaluation. After the research is finished, the problem arises again when it will destroy the documents that have been examined.  This condition causes waste generation which is not environmentally friendly. An alternative solution for this is to use an online system of calculating credit numbers. However, the development and use of online system applications require considerable development, maintenance, and development costs. Based on research conducted using Microsoft Excel software combined with several software that provides unpaid facilities, a credit score calculation system application can be built for Widyaiswara that is simple, easy, and inexpensive. The results of trials conducted on the calculation of Widyaiswara BPSDM credit figures in DKI Jakarta Province gave very satisfying results, especially on increasing the speed of time and accuracy of proposals and assessments.

scholarly journals A Review of the Psychological Factors Affecting the Acquisition and Outcomes of Credit

2021 ◽  
Author(s):  
Jacob Turton ◽  
Adam Gill ◽  
Paul Harrald ◽  
Eleanor Demuth
Keyword(s):  
Personality Traits ◽  
Psychological Factors ◽  
Review Paper ◽  
Situational Factors ◽  
Financial Outcomes ◽  
Factors Affecting ◽  
Personal Credit ◽  
Credit Scores ◽  
Behavioural Factors

Since their introduction in the 1980s, credit scores have been the dominant method used to assess the creditworthiness of individuals. However, they rely heavily on situational factors which may lead to good long term borrowers being denied due to unfortunate recent circumstances. Instead, there is emerging evidence that a number of psychological factors including personality traits, attitudes and behaviours play an important role in the acquisition and outcomes of credit. Taking account of these factors may provide a better picture of the long term creditworthiness of individuals, despite their current circumstances. This review paper takes the important step of collating the latest research on the psychological factors involved throughout the credit process from acquisition to financial outcomes. It highlights the multifaceted nature of personal credit use with the various inextricably linked personality, attitudinal and behavioural factors involved

scholarly journals Using Credit Scores to Predict and Analyze Areas of Gentrification and Urban Development in Toronto, Canada - a Geo-Spatial Approach

2021 ◽  
Author(s):  
Nicholas Pulsone ◽  
Brian Ceh
Keyword(s):  
Spatial Analysis ◽  
Urban Development ◽  
Well Being ◽  
Development Zone ◽  
Credit Score ◽  
Spatial Approach ◽  
Credit Scores ◽  
The City ◽  
Analytical Frameworks ◽  
Regent Park

This study examines the use of financial well-being indicators such as credit scores to identify gentrification. This study is a response to the redevelopment of neighbourhoods in the City of Toronto through gentrification. This study also explores both theoretical and analytical frameworks outlined in literature to identify correlations between financial wellbeing indicators and gentrification. Comparing the observations in this study to areas experience gentrification such as Regent Park revealed large implications that gentrification is largely associated with financial wellbeing. The study also found that the average credit scores in the City of Toronto seem to be increasing. The analysis determined that the credit score changes reflected the development in the Regent Park development zone. Key words: Gentrification, credit scores, spatial analysis, urban development

scholarly journals Consumer credit, chronic disease and risk behaviours

2018 ◽  
Vol 73 (1) ◽  
pp. 73-78
Author(s):  
Lorraine T Dean ◽  
Emily A Knapp ◽  
Sevly Snguon ◽  
Yusuf Ransome ◽  
Dima M Qato ◽  
...  
Keyword(s):  
Chronic Disease ◽  
Chronic Diseases ◽  
Salt Intake ◽  
Disease Risk ◽  
Consumer Credit ◽  
Health Behaviours ◽  
Credit Score ◽  
Increased Risk ◽  
Credit Scores ◽  
Zip Code

BackgroundCredit scores have been identified as a marker of disease burden. This study investigated credit scores’ association with chronic diseases and health behaviours that are associated with chronic diseases.MethodsThis cross-sectional analysis included data on 2083 residents of Philadelphia, Pennsylvania, USA in 2015. Nine-digit ZIP code level FICO credit scores were appended to individual self-reported chronic diseases (obesity, diabetes, hypertension) and related health behaviours (smoking, exercise, and salt intake and medication adherence among those with hypertension). Models adjusted for individual-level and area-level demographics and retail pharmacy accessibility.ResultsMedian ZIP code credit score was 665 (SD=58). In adjusted models, each 50-point increase in ZIP code credit score was significantly associated with: 8% lower chronic disease risk; 6% lower overweight/obesity risk, 19% lower diabetes risk; 9% lower hypertension risk and 14% lower smoking risk. Other health behaviours were not significantly associated. Compared with high prime credit, subprime credit score was significantly associated with a 15%–70% increased risk of chronic disease, following a dose–response pattern with a prime rating.ConclusionLower area level credit scores may be associated with greater chronic disease prevalence but not necessarily with related health behaviours. Area-level consumer credit may make a novel contribution to identifying chronic disease patterns.

Sign in / Sign up

Export Citation Format

Share Document