The impact of credit scoring on consumer lending

• 成果类型: Article
• 署名作者: Einav, Liran; Jenkins, Mark; Levin, Jonathan
• 署名单位: Stanford University; National Bureau of Economic Research; University of Pennsylvania
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12019
• 发表日期: 2013
• 页码: 249-274
• 关键词: information

摘要

We study the adoption of automated credit scoring at a large auto finance company and the changes it enabled in lending practices. Credit scoring appears to have increased profits by roughly a thousand dollars per loan. We identify two distinct benefits of risk classification: the ability to screen high-risk borrowers and the ability to target more generous loans to lower-risk borrowers. We show that these had effects of similar magnitude. We also document that credit scoring compressed profitability across dealerships, and provide evidence consistent with the view that credit scoring may have substituted for varying qualities of local information.