The impact of credit scoring on consumer lending.
We study the adoption of automated credit scoring at a large auto finance company and the changes it enabled in lending practices. Credit scoring appears to have increased profits by roughly a thousand dollars per loan. We identify two distinct benefits of risk classification: the ability to screen...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 2; pp. 249 - 275 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Summer2013
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=88235794&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 88235794 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Summer2013 vid: 44 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 88235794 10.1111/1756-2171.12019 ppf: 249 ppct: 26 formats: fmt: – @attributes: type: T – @attributes: type: P size: 636KB tig: atl: The impact of credit scoring on consumer lending. aug: au: Einav, Liran Jenkins, Mark Levin, Jonathan affil: Stanford University and NBER University of Pennsylvania su: Loans Credit scoring systems Consumer lending Finance companies Financial services industry sug: subj: Loans Consumer Lending Credit scoring systems Consumer lending Finance companies Financial services industry ab: We study the adoption of automated credit scoring at a large auto finance company and the changes it enabled in lending practices. Credit scoring appears to have increased profits by roughly a thousand dollars per loan. We identify two distinct benefits of risk classification: the ability to screen high-risk borrowers and the ability to target more generous loans to lower-risk borrowers. We show that these had effects of similar magnitude. We also document that credit scoring compressed profitability across dealerships, and provide evidence consistent with the view that credit scoring may have substituted for varying qualities of local information. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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