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Ford To Use Machine Learning To Assess Credit Risk

PYMNTS

ƒFord Motor Credit Co. the financing arm of the vehicle manufacturer, announced Friday (Aug. 25) that it will implement machine learning credit approval models to determine if it will lend a consumer money as it goes after a segment of the market that doesn’t have a solid credit history.

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Transcript: Sean Dobson, Amherst Holdings

Barry Ritholtz

And up until that moment in time, we didn’t spend a lot of time on credit risk in mortgages. We didn’t really have to model credit risk because that was, that risk was taken by the agencies. But in these private labels, you had the, the market was taking the credit risk.

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Transcript: Jeffrey Sherman, DoubleLine

Barry Ritholtz

Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not. The, the math came easier. And I really hated physics, really. It’s so true.

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