Alex Lintner
👤 SpeakerAppearances Over Time
Podcast Appearances
So they do that.
They develop the model.
The lending product goes out.
People start applying.
The bank starts paying out the loans.
And then...
Loan losses start coming in.
People start missing payments.
So that's a model behavior, because there's a prediction of how much of that will there be.
If those variables come off, the industry term for that is it's model drift.
So maybe the loan losses are higher.
Maybe we're not getting as many people of that age groups.
Maybe late payments are more than we thought.
All those kind of metrics, it's called model drift if it comes off.
We use artificial intelligence when those models drift to prompt the person who has created the model or the oversight department in the financial institution.
There is model drift.
Not only do we tell them that there is model drift, we also tell them what variables in their model are the reason for the drift.
You're missing a data element.
You set it too low.
You set it too high.