The objective of quantitative credit scoring is to develop accurate models of classification. Most attention has been devoted to deliver new classifiers based on variables commonly used in the economic literature. Several interdisciplinary studies have found that personality traits are related to financial behaviour; therefore, psychological traits could be used to lower credit risk in scoring models. In our paper, we considered financial histories and psychological traits of customers of an Italian bank. We compared the performance of kernel-based classifiers with those of standard ones. We found very promising results in terms of misclassification error reduction when personality attitudes are included in models, with both linear and non-linear discriminants. We also measured the contribution of each variable to risk prediction in order to assess importance of each predictor

Liberati, C., Camillo, F. (2018). Personal values and credit scoring: new insights in the financial prediction. JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, 69(12), 1994-2005 [10.1080/01605682.2017.1417684].

Personal values and credit scoring: new insights in the financial prediction

Liberati, C
Primo
;
2018

Abstract

The objective of quantitative credit scoring is to develop accurate models of classification. Most attention has been devoted to deliver new classifiers based on variables commonly used in the economic literature. Several interdisciplinary studies have found that personality traits are related to financial behaviour; therefore, psychological traits could be used to lower credit risk in scoring models. In our paper, we considered financial histories and psychological traits of customers of an Italian bank. We compared the performance of kernel-based classifiers with those of standard ones. We found very promising results in terms of misclassification error reduction when personality attitudes are included in models, with both linear and non-linear discriminants. We also measured the contribution of each variable to risk prediction in order to assess importance of each predictor
Articolo in rivista - Articolo scientifico
Credit scoring; psychological traits; credit information; financial prediction; Kernel discriminant;
English
2018
69
12
1994
2005
reserved
Liberati, C., Camillo, F. (2018). Personal values and credit scoring: new insights in the financial prediction. JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, 69(12), 1994-2005 [10.1080/01605682.2017.1417684].
File in questo prodotto:
File Dimensione Formato  
01605682.2017.pdf

Solo gestori archivio

Tipologia di allegato: Publisher’s Version (Version of Record, VoR)
Dimensione 1.09 MB
Formato Adobe PDF
1.09 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/183247
Citazioni
  • Scopus 22
  • ???jsp.display-item.citation.isi??? 13
Social impact