Updated IQ and Well-being Scores for the 50 U.S. States

At the level of the 50 U.S. states, an interconnected nexus of well-being variables exists. These variables have been shown to strongly correlate with estimates of state IQ in interesting ways. But the state IQ estimates (McDaniel 2006) are now more than 16 years old, and the state well-being estimates (Pesta et al., 2010) are over 12 years old. Updated state IQ and well-being estimates are therefore needed. I thus first created new state IQ estimates by analyzing scores from both the Program for the International Assessment of Adult Competency (for adults), and the National Assessment of Educational Progress (for fourth and eighth grade children) exams. I also created new global well-being scores by analyzing state variables from the following four well-being subdomains: crime, income, health, and education. When validating the nexus, several interesting correlations existed among the variables. For example, state IQ most strongly predicted FICO credit scores, alcohol consumption (directly), income inequality, and state temperature. Interestingly, state IQ derived here also correlated .58 with state IQ estimates from over 100 years ago. Global well-being likewise correlated with many old and new variables in the nexus, including a correlation of .80 with IQ. In sum, at the level of the U.S. state, a nexus of important, strongly correlated variables exists. These variables comprise well-being, and state IQ is a central node in this network.

Decentralising Personal Credit Score

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.

Taking Financial Literacy Downtown: Leveraging Community Partnerships to Increase Communication of Essential Financial Information in an Urban Area

Financial illiteracy is a systemic issue across the country, especially among lower-income individuals in urban communities. This low level of financial literacy often leads to higher levels of debt, lower credit scores, less wealth accumulation, and poor retirement planning. Increasing financial literacy in these priority populations can be effective in combatting some of these negative financial outcomes. This study emerged from a partnership between community organizations in a large urban metropolitan area and scholars from diverse disciplinary backgrounds. Guided by formative research principles, this manuscript reports on research findings derived from several focus groups with community members. These focus groups helped to identify existing perceived financial knowledge levels, categorize barriers to enhancing financial literacy, and illuminate potentially pathways to effective financial literacy program development.

PENGEMBANGAN SUMBER DAYA MANUSIA PADA PERPUSTAKAAN UNIVERSITAS HASANUDDIN

Penelitian ini dilakukan di Perpustakaan Universitas Hasanuddin yang dilaksanakan pada bulan Februari-Maret 2021. Pendekatan dalam penelitian ini menggunakan deskriptif kualitatif. Teknik pengumpulan data melalui observasi, wawancara mendalam, dan studi kepustakaan. Tujuan dari penelitian ini adalah: (1) Untuk mengetahui sistem pengembangan SDM kepustakawanan terhadap pelayanan di Universitas Hasanuddin; dan 2) Untuk mengetahui hambatan yang dialami dalam pengembangan pustakawan di perpustakaan Universitas Hasanuddin. Hasil penelitian menunjukkan bahwa: (1) Sistem pengembangan kepustakawanan di perpustakaan Universitas Hasanuddin dilakukan melalui berbagai macam kegiatan. Untuk mengembangkan SDM pustakawanan melalui pendidikan dan pelatihan (diklat) dilakukan dengan berbagai bentuk kegiatan, seperti seminar, webinar, workshop atau sharing knowledge (diskusi kecil), uji kompetensi, dan sertifikasi. Sementara itu kegiatan non diklat dilakukan dalam bentuk rotasi pegawai di lingkungan perpustakaan. Untuk tugas belajar belum dilakukan secara langsung melalui inisiatif kelembagaan perpustakaan, karena itu selama ini dilakukan secara mandiri. Untuk promosi jabatan belum dilakukan sesuai dengan yang diatur didalam Menpan RB Nomor 9 Tahun 2014 tentang Jabatan Fungsional Pustakawan dan Angka Kreditnya. (2) Hambatan dalam pengembangan SDM kepustakawanan di perpustakaan Universitas Hasanuddin secara internal berkaitan dengan sikap dan etos kerja para pustakawan yang cenderung abai dan tidak peduli dalam upaya mengembangakan keterampilan yang dimilikinya. Sementara berkaitan dengan hambatan secara eksternal dimana masih banyak pustakawan yang ada di perpustakaan Universitas Hasanuddin yang tidak dapat mengoperasikan layanan secara elektronik berbasis digitalisasi. This research was conducted at the Hasanuddin University Library which was held in February-March 2021. The approach in this study used descriptive qualitative. Data collection techniques through observation, in-depth interviews, and literature study. The aims of this research are: (1) To find out the librarian HR development system for services at Hasanuddin University; and 2) To find out the obstacles experienced in the development of librarians at the Hasanuddin University library. The results of the research show that: (1) The librarianship development system in the Hasanuddin University library is carried out through various activities. To develop human resources for librarians through education and training, various activities are carried out, such as seminars, webinars, workshops or knowledge sharing (small discussions), competency tests, and certifications. Meanwhile, non-training activities are carried out in the form of employee rotation in the library environment. The learning task has not been carried out directly through the library institutional initiative, because so far it has been carried out independently. The promotion of positions has not been carried out in accordance with the provisions of the Minister of Administrative and Bureaucratic Reform Number 9 of 2014 concerning the Functional Positions of Librarians and their Credit Scores. (2) Barriers to the development of human resources for librarianship at the Hasanuddin University library are internally related to the attitudes and work ethic of librarians who tend to be ignorant and do not care about developing their skills. Meanwhile, it is related to external obstacles where there are still many librarians in the Hasanuddin University library who cannot operate digitalization-based electronic services.

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

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

Black and White: Access to Capital Among Minority-Owned Start-ups

We used confidential and restricted-access data from the Kauffman Firm Survey and matched administrative data on credit scores to explore racial disparities in access to capital for new business ventures. The novel results on racial inequality in start-up financing indicate that Black-owned start-ups start smaller and stay smaller over the entire first eight years of their existence. Black start-ups face more difficulty in raising external capital, especially external debt. We find that disparities in creditworthiness constrain Black entrepreneurs, but perceptions of treatment by banks also hold them back. Black entrepreneurs apply for loans less often than White entrepreneurs largely because they expect to be denied credit, even when they have a good credit history and in settings where strong local banks favor new business development. This paper was accepted by David Simchi-Levi, finance.

Does Access to Bank Accounts as a Minor Improve Financial Capability? Evidence from Minor Bank Account Laws

Banking the unbanked is a common policy goal, but should this include access to bank accounts for minors? This study estimates how teenagers' access to bank accounts affects their financial development. Using variation in state laws, we show policies that permit access to independently-owned accounts increase account ownership at age 16 through age 19, although by age 24 those young adults are banked at similar rates to teens who grew up in states that do not allow minors to own accounts independently. Teens who had access to independently-owned accounts use fewer high-cost alternative financial services (like payday loans) through age 20—but are then more likely to use AFS, particularly check-cashing services, from age 21 through 24. Using credit records, we show that access to non-custodial accounts has no effects on credit scores in the short-run, but lower credit scores and more loan delinquencies at ages 21 through 24. While these state laws promote financial inclusion for teenagers, the young people who take on accounts may experience negative consequences in the longer run.

Can Facing the Truth Improve Outcomes? Effects of Information in Consumer Finance

This article explores when consumers avoid learning information about their credit scores and how viewing one’s credit score impacts future credit scores.

Development of an Impairment Point in Time Probability of Default Model for Revolving Retail Credit Products: South African Case Study

A new methodology to derive IFRS 9 PiT PDs is proposed. The methodology first derives a PiT term structure with accompanying segmented term structures. Secondly, the calibration of credit scores using the Lorenz curve approach is used to create account-specific PD term structures. The PiT term structures are derived by using empirical information based on the most recent default information and account risk characteristics prior to default. Different PiT PD term structures are developed to capture the structurally different default risk patterns for different pools of accounts using segmentation. To quantify what a materially different term structure constitutes, three tests are proposed. Account specific PiT PDs are derived through the Lorenz curve calibration using the latest default experience and credit scores. The proposed methodology is illustrated on an actual dataset, using a revolving retail credit portfolio from a South African bank. The main advantages of the proposed methodology include the use of well-understood methods (e.g., Lorenz curve calibration, scorecards, term structure modelling) in the banking industry. Further, the inclusion of re-default events in the proposed IFRS 9 PD methodology will simplify the development of the accompanying IFRS 9 LGD model due to the reduced complexity for the modelling of cure cases. Moreover, attrition effects are naturally included in the PD term structures and no longer require a separate model. Lastly, the PD term structure is based on months since observation, and therefore the arrears cycle could be investigated as a possible segmentation.

Credit Rating Model of Small Enterprises Based on Optimal Discriminant Ability and Its Empirical Study

As an important part of the national economy, small enterprises are now facing the problem of financing difficulties, so a scientific and reasonable credit rating method for small enterprises is very important. This paper proposes a credit rating model of small enterprises based on optimal discriminant ability; the credit score gap of small enterprises within the same credit rating is the smallest, and the credit score gap of small enterprises between different credit ratings is the largest, which is the dividing principle of credit rating of small enterprises based on the optimal discriminant ability. Based on this principle, a nonlinear optimization model for credit rating division of small enterprises is built, and the approximate solution of the model is solved by a recursive algorithm with strong reproducibility and clear structure. The small enterprise credit rating division not only satisfies the principle that the higher the credit grade, the lower the default loss rate, but also satisfies the principle that the credit group of small enterprises matches the credit grade, with credit data of 3111 small enterprises from a commercial bank for empirical analysis. The innovation of this study is the maximum ratio of the sum of the dispersions of credit scores between different credit ratings and the sum of the dispersions of credit scores within the same credit rating as the objective function, as well as the default loss rate of the next credit grade strictly larger than the default loss rate of the previous credit grade as the inequality constraint; a nonlinear credit rating optimal partition model is constructed. It ensures that the small enterprises with small credit score gap are of the same credit grade, while the small enterprises with large credit score gap are of different credit grades, overcoming the disadvantages of the existing research that only considers the small enterprises with large credit score gap and ignores the small enterprises with small credit score gap. The empirical results show that the credit rating of small enterprises in this study not only matches the reasonable default loss rate but also matches the credit status of small enterprises. The test and comparative analysis with the existing research based on customer number distribution, K-means clustering, and default pyramid division show that the credit rating model in this study is reasonable and the distribution of credit score interval is more stable.