Improvement of the Credit Scoring model

Technological advances in the management of large volumes of data present new scenarios where the emergence of Big Data allows large companies to obtain a competitive advantage. Pentaquark developed, together with an important financial institution, the design and implementation of a new credit scoring model, using unstructured information from social networks. Traditional scoring models habitually rejected clients for lack of information, not knowing how to decide with certainty whether they were good or bad. Having additional information from social networks makes the basis on which the decision is made broader and more informed and the gray areas The objective of the project was based on increasing the client portfolio, by fine-tuning the credit rating model of high precision using unstructured information that comes from social networks. Prevent some clients from being classified as "unfit" when receiving a credit, due to lack of sufficient information (false positives or type II error). On the other hand, the solution should strictly comply with the legal requirements of the new RGPD and guarantee the protection and anonymization of the data.

Pentaquark presented a business case through the implementation of Big Data technology, projecting a scenario of competitive improvement translated into a significant increase in potential clients. The analysis, management and correction processes are developed from the main tool developed by Pentaquark. Our system takes advantage of the potential of traditional models (RAROC curve, GINI coefficient, etc ...) and introduces improvements in the elaboration of realistic credit profiles through the analysis with machine learning algorithms, of public data in social networks. Simultaneously, any dependency on the use of personal information is eliminated. Additionally, due to the favorable results obtained, our client decided to extend the joint collaboration period to implement a complementary fraud detection tool, taking advantage of the technological infrastructure already created by Pentaquark.