• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Datadoodle

  • Subscribe
  • About Datadoodle and me
  • Feedback
  • Special projects
Home » SAS finance architect is out to overhaul credit-scoring metrics

SAS finance architect is out to overhaul credit-scoring metrics

September 15, 2008 by Ted Cuzzillo

Some loan officers used to go by rules of thumb. There were “The Three B’s: never lend to beauticians, bartenders or barbers” and “The Three P’s: never lend to preachers, plumbers or prostitutes.” Now we have an automated system, but it can’t tell an upstanding banker from a down-on-his-luck bartender.

Imagine a high-level banker who leaves his job for a promotion in another state. He’s trusted and respected for the job he did as senior risk manager, reporting to the board of directors, at a 19-branch bank in Atlanta. But for moving and taking that new job, his credit score declines. He’s forced to pay more for his new mortgage.

“That makes no sense,” he says, “It’s completely out of context,” says Clark Abrahams, SAS’s chief financial architect. He’s happily resettled, but he’s out to overhaul the U.S. credit scoring system.

The context the system missed is his ample capacity to repay the loan. He’s automatically put in the same basket as some other applicant who may live paycheck-to-paycheck.

Context is just what he would inject into the U.S. credit-scoring system. He calls the new system he’s promoting model CCAF (SEE-caff), for Comprehensive Credit Assessment Framework.

Today’s distorted scoring began decades ago, he explains. Before we had credit scoring, we had loan officers. They approved or denied loans based on their own experience and judgment. But that was unreliable and often unfair.

So when computers became available, banks developed scoring. Now we’ve swung the other way: proxy metrics, not common sense, rate credit applicants.

It’s a story in progress for TDWI’s BI This Week.

Filed Under: Uncategorized Tagged With: Clark Abrahams, indicators, metrics, SAS 1 Comment

Reader Interactions

Trackbacks

  1. BzInsight » Blog Archive » อย่าลืมดู context says:
    September 23, 2008 at 7:41 pm

    […] (SAS finance architect is out to overhaul credit-scoring metrics) ประเด็นสำคัญในเรื่องนี้ก็คือ […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

smarter cities & data narrative

Two recent “storytelling” tools for public audiences Toucan spoonfeeds data’s insight while Juicebox cultivates data skills

The data-shy among us have two friends in the software business. One a few years old and one new this year. Nashville, Tennessee-based Juice Analytics … [Read More...] about Two recent “storytelling” tools for public audiences Toucan spoonfeeds data’s insight while Juicebox cultivates data skills

...and still more

  • This is Datadoodle
  • Civic tech projects need storytellers
  • Democratic pollster: Hillary campaign’s data malpractice
  • Narrative and analytics: brothers
  • Malcolm Gladwell: why oral data’s different

More Posts from this Category

Copyright © 2025 · eleven40 Pro on Genesis Framework · WordPress · Log in

  • Home
  • About Datadoodle and me
  • 2004 to 2019
  • Contact Ted
  • Subscribe