Logistic regression is a very popular binary classification technique in many industries, particularly in the financial service industry. It has been used to build credit scorecards, estimate the probability of default or churn, identify the next best product in marketing, and many more...

The key criteria for making business decisions is profit, so when making credit limit-setting strategy decisions, profitability will be the most important driver. The profitability of a credit limit-setting strategy is dependent on the customer’s utilisation of the limits set by the strategy....

The landscape of financial credit risk models is changing rapidly. This study takes a brief look into the future of predictive modelling by considering some factors that influence financial credit risk modelling. The first factor is machine learning. As machine learning expands, it becomes...