Behavioral Credit Scoring Training Course

Introduction

Empower financial professionals to revolutionize credit risk assessment with our comprehensive Behavioral Credit Scoring Training Course. This program equips you with the essential knowledge and skills to incorporate insights from behavioral economics into credit scoring models, leading to more accurate predictions of borrower behavior and improved risk management. Mastering behavioral credit scoring is increasingly vital for institutions seeking to reduce default rates, enhance profitability, and gain a competitive edge in today's data-driven financial landscape. Our behavioral economics credit risk training course offers in-depth guidance and practical applications for understanding and leveraging the psychological factors that influence creditworthiness.

This Behavioral Credit Scoring training course delves into key areas such as the principles of behavioral economics, cognitive biases in credit decisions, alternative data sources, machine learning for behavioral scoring, and the ethical considerations of using behavioral data. You will gain expertise in identifying and measuring behavioral traits, developing predictive models, and implementing strategies to mitigate the impact of irrational decision-making. Whether you are a credit analyst, risk manager, or data scientist, this Behavioral Credit Scoring course will provide you with the tools and knowledge to develop more robust credit scoring systems and make better-informed lending decisions.

Target Audience:

• Credit Analysts
• Risk Managers
• Data Scientists
• Financial Analysts
• Loan Officers
• Fintech Professionals
• Regulators

Course Objectives:

• Understand the principles of behavioral economics.
• Identify cognitive biases in credit decisions.
• Explore alternative data sources for behavioral insights.
• Apply machine learning to develop behavioral scoring models.
• Evaluate the predictive power of behavioral scores.
• Incorporate behavioral scores into credit risk assessment.
• Address the ethical considerations of using behavioral data.
• Implement behavioral credit scoring in practice.

Duration

5 Days

Course content

Module 1: Principles of Behavioral Economics

• Understanding the principles of behavioral economics.
• Exploring the foundations of behavioral economics.
• Understanding the key concepts and theories.
• Analyzing how individuals deviate from rational decision-making.
• Applying behavioral economics to credit risk.

Module 2: Cognitive Biases in Credit Decisions

• Identifying cognitive biases in credit decisions.
• Understanding common biases.
• Assessing how biases affect creditworthiness.
• Recognizing the impact of framing and anchoring.
• Mitigating the effects of cognitive biases.

Module 3: Alternative Data Sources

• Exploring alternative data sources for behavioral insights.
• Understanding the concept of alternative data.
• Utilizing social media and online behavior.
• Analyzing transaction data and payment history.
• Leveraging psychometric data and personality assessments.

Module 4: Machine Learning for Behavioral Scoring

• Applying machine learning to develop behavioral scoring models.
• Understanding machine learning techniques.
• Selecting relevant algorithms.
• Training and validating models.
• Optimizing model performance.

Module 5: Evaluating Predictive Power

• Evaluating the predictive power of behavioral scores.
• Measuring the accuracy of behavioral scores.
• Assessing the incremental value of behavioral data.
• Comparing traditional and behavioral scoring models.
• Using metrics like AUC and Gini coefficient.

Module 6: Incorporating Behavioral Scores

• Incorporating behavioral scores into credit risk assessment.
• Integrating behavioral scores into existing frameworks.
• Adjusting credit ratings and loan terms.
• Developing strategies for risk-based pricing.
• Enhancing the overall credit decision process.

Module 7: Ethical Considerations

• Addressing the ethical considerations of using behavioral data.
• Understanding data privacy and security.
• Ensuring fairness and transparency.
• Avoiding discrimination and bias.
• Adhering to regulatory guidelines.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.