Digital firm Jaywing is collaborating with building society Nationwide to enhance AI credit scoring products.
Archetype aims to analyse the effectiveness of machine learning, comparing the performance of Archetype against traditional linear regression.
Analysis showed that Jaywing鈥檚 technology produced a 6 per cent increase in predictive power of application models compared with other AI-based systems.
鈥淎rchetype clearly represents a powerful alternative in building credit scores,鈥� said Matthew Jones, head of retail modelling at Nationwide.
鈥淲e were impressed by the ease of use, the rapidly-realised benefits and ability to enforce intuitive behaviour on key variables in neural networks.
鈥淛aywing鈥檚 approach and depth of knowledge has made us confident that the use of neural networks and similar technologies has reached a level of maturity where it can be deployed safely within the credit risk arena.鈥�
Based in Sheffield, Jaywing has over 19 years鈥� experience of credit risk analytics, and this partnership follows a history of long standing relationships with a range of financial services institutions including retail banking giants Lloyds Banking Group and Royal Bank of Scotland.
Nevan McBride, risk practice director at Jaywing, added: 鈥淎cross the whole credit lifecycle, from application and behavioural scoring through to debt collection, we鈥檝e seen Archetype produce significant score improvements every time.
鈥淚n Nationwide鈥檚 case, we鈥檝e also proven that Archetype can go head-to-head with other AI-based techniques and get a similar level of benefit.
鈥淲e look forward to working with Nationwide as it explores other areas of machine learning modelling.鈥�