Models and methodologies for credit scoring in personal banking: A literature review

Abstract

This paper provides a literature review on risk scoring models for credit granting in personal banking. The methods by Abdou & Pointon (2011), Glennon, Kiefer, Larson, & Choi (2008), and Saavedra-García (2010) are considered. The aim is to create a sorting scheme to explain the multiple mathematical and econometrical models used for credit scoring and to produce an up-to-date list supported by scholars and experts in the field.

Keywords

• discriminant analysis
• credit score
• parametric models
• non-parametric models
• semiparametric models