About:
The next KE Hub online Triage Workshop will be presented by Sopra Steria.
Predictive scoring models for financial health and risk classification in the era of open finance
Predictive scoring models remain foundational in financial services for assessing both creditworthiness and financial health. While creditworthiness underpins lending decisions, financial health evaluations enable the early identification of customers vulnerable to financial hardship. In an environment shaped by macroeconomic uncertainty, the rise of Open Banking and Open Finance presents new opportunities and challenges, for developing flexible, data-rich modelling frameworks capable of adapting to rapid change.
This workshop will aim to explore modern techniques and mathematical methodologies aimed at enhancing traditional scoring models and accelerating innovation through the integration of open financial data. The central problem addressed is the automated and optimised design of a multi-objective framework encompassing optimal selection of data features, scoring weights and classification of customers using individualised scores and self-adjusting risk thresholds.
These components are interdependent, with changes to constraints or priorities in one area often impacting the feasibility and optimality of the overall solution. Traditional solutions often rely on manual setup and iterative refinement driven by exploratory analysis and business input. By leveraging Open Banking and Open Finance data, financial firms may adopt automated optimisation approaches to achieve:
- High-precision assessment of financial health aligned with economic shifts;
- Data-driven strategies for early intervention to prevent financial hardship;
- Greater personalisation in risk modelling through the expanded data scope.
Academic mathematical scientists from KE Hub partner university departments are invited to take part in these workshops. If you would like to attend, please contact your local KE Champion to receive the meeting link or get in touch with the organisers, Lauren Hyndman and Diwei Zhou.
KE Hub Triage Workshops are informal discussion sessions where one B.I.G. Partner presents a challenge they are currently facing, with the aim of determining:
- What, if any, mathematical sciences approaches can be used to address the challenge?
- Who from the mathematical sciences community would like to take on the challenge?
- What mechanisms are most appropriate for driving the challenge forward?
The purpose of these workshops is to allow the B.I.G. Partner to engage directly with academic mathematical scientists to probe the scientific content of their proposed challenge. The environment is relaxed and interactive, and we encourage questions, clarifications and discussions throughout. You can find information on all upcoming and past workshops here.