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A survey of the issues in consumer credit modelling research

Author

Listed:
  • L C Thomas

    (University of Southampton)

  • R W Oliver

    (University of California)

  • D J Hand

    (Imperial College)

Abstract

Methods for assessing the credit risk when lending to consumers has been in operation for 50 years. Yet, there are probably now more opportunities and challenges for research into the development of this area than ever before. This paper surveys the development of the methodology, describes the current environment for consumer lending and seeks to identify some of the modelling areas and issues that are actively being researched or should be.

Suggested Citation

  • L C Thomas & R W Oliver & D J Hand, 2005. "A survey of the issues in consumer credit modelling research," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(9), pages 1006-1015, September.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:9:d:10.1057_palgrave.jors.2602018
    DOI: 10.1057/palgrave.jors.2602018
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    References listed on IDEAS

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    1. E. Stanghellini & K. J. McConway & D. J. Hand, 1999. "A Discrete Variable Chain Graph for Applicants for Credit," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 48(2), pages 239-251.
    2. Srinivasan, Venkat & Kim, Yong H, 1987. "Credit Granting: A Comparative Analysis of Classification Procedures," Journal of Finance, American Finance Association, vol. 42(3), pages 665-681, July.
    3. Maria Stepanova & Lyn Thomas, 2002. "Survival Analysis Methods for Personal Loan Data," Operations Research, INFORMS, vol. 50(2), pages 277-289, April.
    4. R. M. Cyert & H. J. Davidson & G. L. Thompson, 1962. "Estimation of the Allowance for Doubtful Accounts by Markov Chains," Management Science, INFORMS, vol. 8(3), pages 287-303, April.
    5. R L Keeney & R M Oliver, 2005. "Designing win-win financial loan products for consumers and businesses," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(9), pages 1030-1040, September.
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