Credit Default Rates

DataRobot operationalizes real-time loan assessment by automating model building to predict the likelihood of future default.

Industry

Financial Services

Why DataRobot

DataRobot makes it easy to build and deploy default rate-based models, automating real-time applicant risk predictions.

Highlights
  • Identify the riskiest customers, those most likely to default on their loans.
  • Increase the return on investment within a portfolio of loans.

Challenge

People with years of experience can judge someone’s likelihood of default, but that is not an efficient method for judgement as you grow a business. Increasing the value and number of loans is difficult without a scalable method in place to judge the default risk of many applicants.

Solution

DataRobot uses past information about borrowers’ default rates to predict the likelihood of default for future borrowers. Incorporating the predictive models built with DataRobot into a real-time loan approval process is easy, allowing businesses to scale up and expand their loan portfolios.

Results:

  • Better identify the riskiest borrowers
  • Understand the drivers that cause a loan to default
  • Set up a real-time prediction system to expand loan approval processes

Do you have a similar case?

Want to see this specific use case in action? Contact us to find out how we can solve your problems.

Contact us