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FICO – How to build credit risk models using AI and machine learning

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Which works better for modeling credit risk: traditional scorecards or artificial intelligence and machine learning?

Given the excitement around AI today, this question is inevitable. It’s also a bit silly. While some new market entrants may have a vested interest in pushing AI solutions, the fact is that traditional scorecard methods and AI bring different advantages to credit risk modeling — if you know how to use them together.

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