A review of credit scoring research in the age of Big Data

Ceylan Onay and Elif Öztürk

Journal of Financial Regulation and Compliance, 2018, vol. 26, issue 3, 382-405

Abstract: Purpose - This paper aims to survey the credit scoring literature in the past 41 years (1976-2017) and presents a research agenda that addresses the challenges and opportunities Big Data bring to credit scoring. Design/methodology/approach - Content analysis methodology is used to analyze 258 peer-reviewed academic papers from 147 journals from two comprehensive academic research databases to identify their research themes and detect trends and changes in the credit scoring literature according to content characteristics. Findings - The authors find that credit scoring is going through a quantitative transformation, where data-centric underwriting approaches, usage of non-traditional data sources in credit scoring and their regulatory aspects are the up-coming avenues for further research. Practical implications - The paper’s findings highlight the perils and benefits of using Big Data in credit scoring algorithms for corporates, governments and non-profit actors who develop and use new technologies in credit scoring. Originality/value - This paper presents greater insight on how Big Data challenges traditional credit scoring models and addresses the need to develop new credit models that identify new and secure data sources and convert them to useful insights that are in compliance with regulations.

Keywords: Big Data; Financial inclusion; Credit scoring; Access to credit; Data privacy; Discriminatory scoring (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:jfrc-06-2017-0054

DOI: 10.1108/JFRC-06-2017-0054

Access Statistics for this article

Journal of Financial Regulation and Compliance is currently edited by Prof John Ashton

More articles in Journal of Financial Regulation and Compliance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().