Join the discussion as Andrew and Luke explain how credit scoring operates and how the consumer credit market is about to change dramatically. 
 
Date: Thursday 22 November 2018
Time: 12:00-12:45pm
Registration: Register below to be sent a webinar link
  
Register below to receive a webinar link
Webinar Overview
The credit environment is currently undergoing serious change as comprehensive credit reporting (CCR) is being implemented. This new regime will mean that credit providers have a greater level of information about potential borrowers. The webinar will address issues such as:
 
  • What are the changes to consumer credit environment?
  • How are individuals likely to be affected by the introduction of CCR?
  • What has been the experience from other countries following the introduction of similar rules?
As comprehensive credit reporting arrives, it will also be important to consider issues for credit providers. CCR is expected to increasingly separate ‘good’ credit risk from ‘bad’ credit risks, and result in greater competition from credit providers for high-quality borrowers. In turn we assess issues with finding high quality borrowers, and how lower quality borrowers should react.

We examine information from a large marketplace lending platform in Australia to examine the loan acceptance rates and loan default rates by credit grade, as well as exploring various other aspects of the market for personal loans.
 
  • Are loans priced effectively? Is there relevant information that could be obtained outside the credit score?
  • Are there differences in what high- and low-quality borrowers apply for? What about in default rates?
  • Does the location of a borrower matter for loan acceptance and default? Does there appear to be a difference between borrowers in high- and low-socioeconomic areas?
  • Does there appear to be a difference in borrower quality based on the channel they reach the loan platform? For instance, are borrowers who have checked their credit score likely to be better credit risks or worse credit risks?
  • What appears to be the impact of ‘rate comparison’ websites in the challenge of finding quality borrowers? Are borrowers who use rate comparison websites better credit risks?
About the Webinar Speakers
 
Dr Andrew Grant is a senior lecturer in the Discipline of Finance. His main areas of expertise are behavioural finance, individual investor decision making, and betting markets, focusing on preference and belief-based asset allocation and asset pricing decisions, including developing models of asset allocation and optimal investor behaviour in betting markets. Other broad dimensions of his research explore the interaction of individual investors with financial institutions, and how their behaviour may be predicted based on numerical scores or past performance, and what anchors drive individual investors to the marketplace. He has also been engaged with industry, with studies of alternative finance and marketplace lending in the Asia-Pacific.
 
Andrew is also an elected member of the Business School’s alumni executive committee, helping to organise events and engage with local and international alumni, connecting current students with former students. He has supervised a number of research students and received multiple awards for teaching. He has appeared as a guest commentator in print, radio, and on television, discussing issues such as gambling market and banking regulation, personal savings and asset allocation model evaluation.

Dr Luke Deer researches and writes on finance, banking and fintech in China and Australia. Luke was the research director for the first Asia-Pacific China Alternative Finance Benchmarking Report published in March 2016. This report was led by the Cambridge Centre for Alternative Finance, with the Tsinghua Graduate School at Shenzhen and the University of Sydney Business School and its Finance Discipline, in partnership with KPMG Australia and its regional offices and supported by ACCA (The Association of Chartered Certified Accountants).
 
Luke teaches in banking and finance in the Discipline of Finance at the The University of Sydney Business School.

Twitter: @lukdeer

  
 
Enquiries
For more information please contact:
T +61 2 8627 6517
E business.researchpartnerships@sydney.edu.au
The University of Sydney Business School