Credit Scoring, Statistical Techniques and Evaluation Criteria: A Review of the Literature
By Hussein A. Abdou, John Pointon. Intell. Syst. Account. Finance Manag., 2011
362 citations recorded by the source corpus.
Credit scoring has been regarded as a core appraisal tool of different institutions during the last few decades and has been widely investigated in different areas, such as finance and accounting. Different scoring techniques are being used in areas of classification and prediction, where statistical techniques have conventionally been used. Both sophisticated and traditional techniques, as well as performance evaluation criteria, are investigated in the literature. The principal aim of this paper, in general, is to carry out a comprehensive review of 214 articles/books/theses that involve credit scoring applications in various areas but in particular primarily in finance and banking. This paper also aims to investigate how credit scoring has developed in importance and to identify the key determinants in the construction of a scoring model, by means of a widespread review of different statistical techniques and performance evaluation criteria. Our review of literature revealed that there is no overall best statistical technique used in building scoring models and the best technique for all circumstances does not yet exist. Also, the applications of the scoring methodologies have been widely extended to include different areas, and this subsequently can help decision makers, particularly in banking, to predict their clients' behaviour. Finally, this paper also suggests a number of directions for future research
Subfields: Accounting, Artificial Intelligence, Finance
View Paper: https://www.semanticscholar.org/paper/70d417e49d7c4f7b0dd1d7fe7f14da0e4100eb8b
How researchers see this paper
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In Accounting
In Artificial Intelligence
- Sérgio Moro
- Paulo Rita
- Ana Isabel Marqués
- Paulo Cortez
- Vicente García
- José Salvador Sánchez
- Francisco Herrera
- Mark J. Embrechts
Citations in the corpus
- Business intelligence in banking: A literature analysis from 2002 to 2013 using text mining and latent Dirichlet allocation (2015, background): “Abdou and Pointon (2011) reviewed 214 articles/books/thesis on credit scoring applications, searching for the statistical techniques used for evaluation and found that there is not an overall best technique for building models.”
- A literature review on the application of evolutionary computing to credit scoring (2013, background): “From the seminal reference to credit scoring in the introductory paper by Altman (1968), many other developments have been subsequently proposed (Baesens et al , 2003; Bahrammirzaee, 2010; Abdou and Pointon, 2011).”