"Causality is the new explainability."
We all know credit limit increases are one of the most, if not the most, important levers in the card profit model. And we all know the reality of managing credit limits is far more complicated than the theory - every action has a reaction and all of that. So we focus on pulling back and releasing the spring of the pinball machine and then just get ready to react as best we can.
But as data analytic techniques become more advanced, we can plan more and leave less to chance. So in this episode, I sit down with Dr Cristian Bravo, from Ontario's Western University, to talk about Sherly Alfonso-Sánchez's research into "Causal Learning for Credit Limit Adjustment in Revolving Lending Under Adversarial Goals"
Western University has data science programs at https://uwo.ca/sci/datascience/index.html
The Banking Analytics Lab is at https://thebal.ai/
If you'd like to speak to Cristian, or just stay up to date with the work he and the BAL are publishing, you can find him on LinkedIn https://www.linkedin.com/in/cristianbravor/
In our chat, Cristian mentions an early version of this research - that paper can be found and downloaded here: https://arxiv.org/abs/2306.15585
Or go read Sherly's blog on this same topic at https://thebal.ai/2023/07/11/optimizing-credit-limit-adjustments-under-adversarial-goals-using-reinforcement-learning/
Then come and find me on LinkedIn, and while you're there, send me a connection request: https://www.linkedin.com/in/brendanlegrange
As mentioned more than once in this episode, my action-adventure novels are on Amazon, some versions even for free, and my work with ConfirmU and our gamified psychometric scores is at https://confirmu.com/ and on episode 24 of this very show https://www.howtolendmoneytostrangers.show/episodes/episode-24
If you have any feedback or questions, or if you would like to participate in the show, please feel free to reach out to me via the contact page on this site.
Keep well, Brendan
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