Problem statement: The loss generated by non-paying customers is quite high. (8,07%)
Goals: Develop a machine learning model that can predict potential customers who can borrow money with minimum risk. loan condition factor in order to design credit score card. Provide insights and recommendations for credit risk management design.
Objective: Help minimize these losses by using predictive models to predict customers who are likely to default. Use AUC and Kolmogorov-Smirnov (KS) with target: - AUC : 0,7 - KS : 0,3
Business Metrics: Lost Given Default (LGD)