The Modern Credit Union Circa 2025: A "New/New" Breed?
Hornless Unicorns?
The Hornless Unicorn**: a sub-species of unicorn
which does not possess any distinctive qualities nor characteristics.
The
hornless variety often lacks the strength of spirit, stamina, and
vitality of its thoroughbred ancestors. Narcissistic, must be groomed regularly, tends to overeat. Hard
to distinguish in a herd, frequently mistaken for the common horse.
Selective breeding experiments have largely failed. The results
of these mergings have tended to produce progeny most closely resembling a
mule - i.e., half horse and half ass.
Rapidly declining in numbers, extinction has been predicted.
** Source: The Modern Zoology Reference Textbook (Random House, fifth edition, 2021),
No purpose? ... sounds sorta pointless!
Pointless? Absolutely, destined for mediocrity and obscurity. Done in by their own hubris.
ReplyDeletehttps://www.cnbc.com/2025/07/31/fico-ceo-defends-credit-score-pricing-amid-fhfa-criticism.html?qsearchterm=fico
ReplyDeleteCorrect, you're unnecessary fee is not blocking home ownership, its the blatant racism built into your algorithm A$$ hole
Ridiculous. An algorithm, which is blind to color, uses no income, demographic or geographic information, and treats people with the same credit data and circumstances EXACTLY the same, cannot be racist. Using scoring models and automation in lending removes human error and bias and eliminates disparate treatment.
ReplyDeleteYou need to find something or someone else to call racist and blame because the inputs into the algorithm vary by race or other demographics.
Unless the algorithm has bias built into it, whether intentioned or not.
DeleteI can't wait for AI to determine rates. Maybe people who went to college will end up getting better rates, for instance.
DeleteIf lenders price on FICO, then college graduates already get better rates, as their FICO scores are 50-70 point higher than high school grads, on average. This is true because their credit characteristics look different than non-grads.
DeleteDoubt we’ll see level of education be an specific variable in score and pricing models - it’s basically factored in already. Said differently, if I am a college grad with bad credit, just being a grad doesn’t add predictive power and I wouldn’t get any “credit” for being a grad. If I am a HS grad with perfect credit, I won’t get points docked, as being a HS only grad doesn’t add predictive power when I already have perfect credit.
It’s not really an AI thing. But.. any scores or models - either traditional ones or new AI-based ones that allow lenders to more accurately predict credit risk should be used because it helps everyone.
What if AI could one day - reasonably accurately predict ahead of time, who would default on loans, based solely on prediction, not on the past? (Think - the movie Minority Report).
Delete"Its JUST a coincidence the average score of whites (A paper) is 60 points higher than blacks (b paper)".
ReplyDeleteWell that sounds like a little white privilege mixed with a side of racism and victim blaming.
Coincidence with what? If the scores are lower as you say, then it's because the credit performance is different. It's not a mystery - it's about level of debt, utilization, type of debt, inquiries, and paying on time. If those things are different among difference races or demographics, there are root causes for that need to be addressed. Not a model issue. It doesn't come up with a different score for white and black people when the inputs are exactly the same.
DeleteYou've got all the buzzwords down.. ..not sure who the victim is or who is blaming them. If you're an SECU employee - perhaps just try and understand how it works and focus on helping people you think need help.