A survey of the issues in consumer credit modelling research

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.

Keywords:

• credit scoring
• consumer credit risk
• classification
• Basel capital accord