HiPARIS_Summerschool_2022_TUTORIAL1A_JohanHOMBERT

Johan HOMBERT

HEC Paris

Tutorial 2.A

Data in Finance: FinTech Lending

(July 4, 8:30 AM - 12:00 PM)

Abstract


This tutorial includes a short lecture followed by an interactive game in which participants play the role of a FinTech lender. Context: Banks and insurers increasingly use alternative data and machine learning to screen consumers and price products. For example, a FinTech using digital footprints to predict default will have a competitive edge over traditional banks. However, there are important pitfalls to avoid when using alternative data and machine learning to score consumers, such as the winner’s curse and discrimination. This tutorial and its interactive game provide an introduction to these issues.