Credit Risk models play a key role in the assessment of two main risk drivers. 1)Willingness to pay and 2) Ability to pay. Since not all customers pay back - we try and build scorecards to help us predict the odds of repayment.

These two fundamental drivers need to be determined at the point of each application to allow the credit grantor to make a calculated decision based on repayment odds, which in turn determines if an applicant should get a loan, and if so - what the size, price and tenure of the offer will be.

There are two types of risk models in general: New business risk, which would be used to assess the risk of application(s) associated with the first loan that he/she applies. The second is a repeat or behaviour risk model, in which case the customer has been a client and applies for a repeat loan. In the latter case - we will have additional performance on how he/she repaid their prior loans which we can incorporate into our risk model.

Goal: It is your job to predict if a loan was good or bad. Good/Bad - Accurately predict binary outcome variable, Good is 1 and Bad is 0

Metric: Your score is the percentage of loans you correctly predict using categorization accuracy.

FOR MORE INFO or interest to participate, please email info@datasciencenigeria.org for the competition link.