July 2020
Machine learning is transforming consumer lending
The COVID-19 remains unpredictable with potential long tail risks affecting the consumer credit market. Unemployment rates are likely to remain in high to affect consumers’ payment capabilities and has a strong correlation with delinquency rates. Hong Kong’s unemployment rate jumps to 6.2% in June, the highest in more than 15 years. Under the current situation with the wave of virus-driven recession, some of lenders who rely on traditional linear-regression models are just tightening underwriting for all segments of customers because they are not agile to adjust loan decisions properly and timely. At WKWK, we’ve been building risk prediction models for lenders and believe that lenders who can get AI credit […]
Lenders are required to consider consumer financial hardships
The seasonal adjusted unemployment rate in Hong Kong increased to 5.9% in the three months to May 2020 from 5.2% in the previous period, which was the highest jobless rate since the three months to April 2005, amid the virus-driven downturn. Hong Kong unemployment hits 15-year high with 5.9% out of work TransUnion has also released their Consumer Financial Hardship Survey by a webinar, which is now available on-demand for you to view. You can refer the following link. Here’s the brief summary of the survey on the consumer financial hardship due to COVID-19: As TransUnion provides a recommendation, lenders are required to extend relief programs with term extensions or […]