Definition #
Dynamic scoring systems evaluating credit, operational, and regulatory risks.
Key Characteristics #
- Alternative data integration
- Real-time updates
- Adverse action compliance
- Scenario modeling
Why It Matters #
Reduces loan defaults by 35% (Experian).
Common Use Cases #
- Insurance underwriting
- Vendor risk assessment
- Compliance audits
Examples #
- FICO Score XD
- SAS Risk Stratification
- Mastercard Test & Learn
FAQs #
Q: Explainability?
A: Provides FCRA-compliant reason codes for all decisions.
Q: Data sources?
A: Uses 1000+ signals including cash flow and behavioral data.