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Decision cognition in retail banking: innovation at work Edward Xiao-Ming Huang, Head of Decision Science Cards & Loans, HBOS Understanding customers behaviors and do smarter tar put uping, lending, and pricing decisions to optimize risk-reward trade-off under a electropositive risk appetite as well as former(a) business constraints is fundamental to a retail banks success. This becomes even more important to banks which are facing both severe competition and an economic downturn and are essay to maintain profitability to achieve financial survival. Decision science has come a long way in decision its place in contemporary retail banking anxiety. This is evidenced by the fact that all major banks (or consumer finance companies) turn out straight established in-house decision science departments (or teams), although such departments might have a different name. Deploying mathematical, statistical, or other quantitative models in retail banks to support decision-making is not new. Best known applications are conviction scorecards, which are now commonly used for differentiating customers recognise risks and for determining banks lending decisions. It is widely acknowledge that credit risk win can trace its billet to the first scorecard Fair Isaac introduced into commercial lending decisions over 50 years ago.

It has since become the cornerstone of modern credit risk management due to the advances in computing technology, database infrastructure, and the availableness of affordable computing power. No longer is credit scoring solely applied to assist the initial lending decisions, it is excessively applied to enhance existing customers credit risk management and collections strategies. In addition, some innovative banks are not on the button satisfied with predicting credit risk, they seek optimizing business strategies through mathematical modeling. This journey of transformation coincided with changes of name for the supporting analytical answer within retail banks. For the first 30 years... If you want to get a full essay, order it on our website: Ordercustompaper.com

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